A very honest sharing, grateful to meet.

The dealer's wash is never just for your little chips.

Having been in the cryptocurrency space for ten years, I've seen too many retail investors curse the dealer at the slightest drop, thinking that the dealer is only focused on the little coins in their hands. The truth is: the dealer's wash is really not about seizing your chips, but rather to eventually drive the price higher and exit more steadily.

Let me share an operation I witnessed firsthand.
There was a small coin called METIS (an anonymous small-cap coin, not a real duplicate), with an initial price of 1.2U and a circulation of 10 million pieces, where retail investors held 60% of the shares. A small team bought 4 million pieces at the bottom, but they were afraid to push the price up directly. Why?
Because if they forced the price up, as soon as it hit 1.5U, early retail investors would start to sell, and the team couldn't hold the price, ultimately leading to no one lifting the price and they would end up singing their own tune. So, they had to wash the position.

Their washing method was very systematic:
Phase 1: No volume decline
The price fell slowly from 1.2U to 0.9U with no volume and no news. Retail investors began to panic: "Is it not going to happen?" "Run, don't let it go to zero." So they started to cut losses, and the dealer quietly collected near 0.9.
Phase 2: Sharp drop and rebound
The price suddenly accelerated downwards, hitting 0.7U, then quickly rebounded to 0.95. Many thought it had bottomed out and rushed in to buy the dip. As a result, the dealer dropped the price again below the previous low, directly to 0.65. All the dip buyers were buried, their mentality collapsed and they cut losses.
Phase 3: Creating panic
With FUD messages: "The project party withdraws liquidity" "Large investors flee," the price crashed down to 0.5U. The market was in despair, retail investors were forced to liquidate, but the dealer was accumulating a lot in this range.
Finally, the V-shaped reversal + quick rebound
The dealer used a small amount of funds to quickly push the price back to 1U, creating a "golden pit." Those who cut losses before didn't dare to chase, while new entrants had their costs around 1U.
After this round of cleaning, the dealer's chips increased from 4 million to 6 million pieces, and the average cost was even lower. Most importantly, the weak floating chips were cleaned out, making it easier to push the price up later with light selling pressure.

The essence of washing positions is not to seize your coins, but to change the players — to wash out low-cost retail investors and bring in a group of higher-cost, less easily shaken investors. Therefore, next time you see a sharp drop, don’t just curse the dealer. Understand this, and you will know: this is not the end, but the dealer's preparation for a price increase.
Before, one person was stumbling around in the dark, now the light is in my hands.
The light is always on, will you follow? @币来财888