Opening

One night in 2021, while scrolling through my phone, I suddenly received a message from my good friend Xiao Wang: "Bro, I found an amazing project that's about to get listed, should we jump in?" I was new to crypto at the time and didn't know much about the space, but seeing everyone in the group chat hyping it up and good news flying around, I couldn't contain my excitement and transferred 50,000 yuan to the exchange, ready to go all in.

Little did I know, this all-in move would teach me a harsh lesson. Shortly after the token was listed, the price started plummeting. I watched the numbers in my account shrink continuously, completely dumbfounded. The atmosphere in the group chat changed from celebration to wailing, while the project team's stream of positive news suddenly vanished. Looking back now, that experience was a perfect "retail investor harvest" operation.

Shocking Statistics

Recently, I saw a survey report released by Solidus Labs that delivered a heavy blow to the crypto world. Can you believe it? Since January 2021, over 56% of ERC-20 tokens listed on mainstream exchanges were suspected of insider trading! This number is absolutely insane!

I remember when I first saw this statistic, I was completely stunned. Think about it - for every two tokens we trade, one might involve insider trading. It's like dancing on a knife's edge! What's scarier is that this is just what's been discovered; the actual situation could be even worse.

Inside Secrets

Through monitoring on the HALO platform, they discovered some very interesting phenomena. First, they identified over 100 suspicious insider trading accounts that participated in more than 400 insider trading events. These "veterans" operated very skillfully, typically quietly building positions on DEXs before tokens were officially listed.

When tokens were officially listed and the market started speculating, these people would slowly start selling. Some hardcore players even participated in more than 25 pre-listing trades, essentially becoming professional "retail harvesting machines"! I remember in my experience of getting burned, after seeing the token price crash post-listing, I checked the blockchain explorer and found several whales had already accumulated at low prices before listing and started massive selling after listing.

Deep Analysis

As a battle-scarred crypto veteran, looking back at these phenomena now, I think they were completely predictable. First, the crypto space is still in a relatively wild growth stage, with insufficient regulatory policies and many grey areas without clear rules. This creates opportunities for some people to exploit these loopholes for improper gains.

Second is the severe information asymmetry. Regular investors can only see information publicly released by project teams, while so-called "insider information" is often carefully designed marketing traps by the projects. I frequently see projects intentionally leaking supposed "insider information" in Telegram groups to lure retail investors to buy at high prices.

There's also the anonymity feature of blockchain, which makes some insider traders even more reckless. Even when abnormal trades are discovered, it's very difficult to trace who's behind the operations. A friend of mine who does on-chain analysis told me they often find obvious traces of insider trading but struggle to link these addresses to actual operators.

Guide to Avoiding Pitfalls

After so many lessons, I've summarized some experiences that I hope will help others avoid these traps. First, be especially vigilant with newly listed tokens. Now when I see new token listings, my first reaction is to check their trading history on DEXs. If I find abnormal trading volume before listing, it's probably insider trading.

I now use professional on-chain analysis tools like Solidus Labs' platform. These tools can help us monitor suspicious trading behavior and detect potential risks early. Sometimes you can't spot problems just by looking at price charts, but through these tools, we can discover deeply hidden tricks.

Also, pay special attention to abnormal behavior from project teams. For example, suddenly starting aggressive marketing or continuously releasing ambiguous positive news could be signals they're preparing to cash out. In my experience of getting burned, the project team was hyping aggressively before listing, then immediately disappeared after listing.

Future Outlook

Although insider trading is indeed prevalent in crypto currently, I remain confident about the market's future. First, as regulatory policies gradually improve across countries, such blatant insider trading will become increasingly difficult. The recent SEC investigations into some cryptocurrency projects, for example, have served as a major warning to the market.

Second, there are now more professional institutions providing more transparent and fair information to the market. Platforms like Coin Insider are constantly working to provide investors with accurate, unbiased market information to help them make smarter decisions.

Technological progress also gives us more hope. There are now many advanced on-chain analysis tools that can monitor and warn of suspicious trading behavior in real-time. I believe as these tools continue to improve, the cost of insider trading will increase, eventually making such behavior increasingly rare.

Friendly Reminder

After years of experience in this space, my biggest realization is: when investing in crypto, always remember "investment carries risk, enter the market with caution." Don't let promises of high returns cloud your judgment, and don't easily trust so-called "insider information."

I've seen too many people suffer heavy losses from believing in supposed "insider tips." I remember a friend who believed the project team's promise that they would "definitely get listed on a major exchange," invested a lot of money, and then the team disappeared without explanation.

Maintaining rationality and patience is really important in crypto. Don't rush to chase short-term high returns; learn to control risk. My investment principle now is: better to miss out than make a mistake. No matter what others say about a project, I always do my own careful research and only consider investing after confirming there are no issues.

Crypto is like a grand garden, with both opportunities and traps. The key is to maintain a clear head and not be deceived by surface prosperity. Remember, the market will always be there - if you miss one opportunity, there will be another, but if you get burned, you might lose real money.

Finally, I think everyone should develop investment strategies based on their own circumstances. Don't blindly follow others just because you see them making money, and don't lose faith in the market because of temporary losses. In crypto, the most important thing is to learn to think independently and develop your own investment judgment ability.

Do you think these insider trading phenomena will gradually disappear as the market develops? Welcome to share your thoughts and experiences in the comments. I believe through everyone's joint efforts, the crypto space will definitely become more transparent and healthier!