New coin strategy revealed: How the "low circulation, high control" Spot + contract combination can become the new Musang King?

This article dissects the full life cycle of token manipulation, from tokenomics design to retail sentiment guidance to the execution of spot-driven attacks aimed at profiting in the derivatives market. (Synopsis: Cryptocurrency recreates Apple mega dollar buyback: when tokens learn “AAPL” gameplay) (Background added: Bloomberg: How did the “Princeton mafia” dominate the cryptocurrency treasury boom? In a market environment with insufficient spot liquidity, market makers can only focus on the perpetual contract market with increasing trading volumes. To this end, all parties racked their brains to open up the path of spot-contract, organically combined the liquidity and profit and loss judgment rules of the two from the mechanism, and finally gave birth to a new tokenomics model and community expectation management model, creating a “monster coin” long-short double-kill drama. The so-called “monster coin” is the convergence of a series of specific market conditions: the chips are highly concentrated (i.e., “low liquidity, high control”), and they are listed in both the illiquid spot market and the highly liquid and highly leveraged perpetual contract market. This article examines the full life cycle of this manipulation process, from the tokenomics design that initially facilitates the manipulation, to guiding retail sentiment, to the precise execution of spot-driven attacks, with the ultimate goal of triggering chain liquidation in the derivatives market for profit. Disclaimer The purpose of this article is not to endorse such actions or to target any project or exchange, but to provide a technical, quantitative and objective mechanism analysis to help mature market participants identify and potentially avoid related risks. Part I: Trap Building: Preparation Before Manipulation The success of the entire operation depends on a well-designed market structure in which the manipulator establishes near-absolute control over the supply and price discovery mechanisms of the asset before any retail investor is heavily involved. 1.1. Manufacturing Scarcity: Low-Float, High-Control Tokenomics Model The starting point of the strategy is not the trading stage, but the ideation stage of the token. Manipulators, usually project parties or their closely related backers, devise a tokenomics model that ensures that the vast majority of the token supply (e.g., 95%) is locked or held by insiders, and that only a tiny fraction of the tokenization – the “float” – is available for public trading in the early stages of the offering. This “low float, high FDV” model creates artificial scarcity. Due to the limited number of tokens in circulation, even a small amount of buying pressure can lead to rapid price increases and extremely high volatility. This dynamic is deliberate because it significantly reduces the amount of money required by manipulators to push spot prices at will. This tokenomics model aims to create a market that is structurally highly vulnerable to the spot-driven clearing strategies detailed in this report. A normal project issuance aims to build a community through decentralization and fair distribution, while the low-liquidity model is the opposite, it concentrates power. Major holders gain near-complete price control. Manipulators do not need to “hoard” in the later stage; They had control of the market from the start. When this pre-designed asset is placed in a dual-spot and contract listing environment, its token economy structure becomes a weapon. Low liquidity ensures that spot prices can be easily manipulated, while the contract market provides a pool of leveraged participants to harvest. Therefore, tokenomics is a prerequisite for this strategy. Without this level of control, the cost of manipulating spot prices will be prohibitive. The choice of tokenomics is the first and most critical step in the manipulation playbook. On a psychological level, despite the low supply of circulation, high FDV creates the illusion of a grand and ambitious project, while low circulation creates initial hype and a “scarcity effect”, attracting speculative retail interest and creating conditions for subsequent “fear of missing out” (FOMO). 1.2. Catalysts for dual listings: building a two-line battlefield Simultaneous or near-simultaneous listings on highly liquid spot exchanges and perpetual contract markets are a key part of the overall strategy. Platforms like Binance Alpha act as a “pre-listed token screening pool,” signaling potential future mainboard listings and building initial hype heat. The two battlefields are: Spot market (control zone): This is where the manipulator plays to his overwhelming supply advantage. Since the float is extremely small, they can dominate the price with relatively little capital. Perpetual Contract Market (Harvest Zone): This is where retail investors and speculative capital gather. It offers high leverage, which magnifies the positions of retail traders and also makes them extremely vulnerable to liquidation. The main goal of the manipulators is not to profit from spot trading, but to use their control over spot prices to trigger more lucrative events in this second battlefield. The introduction of derivatives alongside spot assets creates a powerful linkage effect. It increases the overall liquidity, price synchronicity, and efficiency of the market, but in this controlled environment, it also creates a direct attack vector for manipulation. Part 2: Market Warm-Up: Creating Sentiment and Measuring Risk Exposure Once the market structure is in place, the next stage for manipulators is to attract targets into the harvest zone (contract market) and accurately measure their exposure. This includes creating false activity and demand narratives while using derivative data as a “fuel gauge.” 2.1. Active Illusions: Volume Swaps and Counterfeit Volumes A new token with a low trading volume is unattractive. Manipulators must create the illusion of an active, liquid market to attract retail traders and automated trading bots that use volume as a key indicator. To achieve this, the manipulator uses multiple controlled wallets to trade with themselves on the spot market. On-chain, this manifests itself in the circular flow of money or assets between related parties. This behavior artificially inflates volume metrics on exchanges and data aggregators, creating a misleading impression of high demand and high liquidity. Despite the complexity of the method, such behavior can be identified by analyzing specific patterns in on-chain data: There is high-frequency trading between a small group of non-known exchanges or market maker wallets. The buy and sell orders for the transaction occur almost simultaneously, and there is no meaningful change in the actual beneficial ownership. There is a mismatch between the reported high trading volume and shallow order book depth or low on-chain holder growth. 2.2. Interpreting the Derivatives Battlefield: Position Volume and Funding Rate Analysis Manipulators do not trade blindly. They meticulously monitor the derivatives market to assess the effectiveness of their warm-up efforts. The two most critical metrics are Open Interest (OI) and funding rates. Manipulators do not use position volume and funding rates as predictors like ordinary traders, but as an instant feedback and targeting system. These indicators act as a “fuel gauge” that tells them precisely when the market has been fully penetrated by unilateral leverage, maximizing the profits of a liquidation storm and making it self-sustaining. An average trader looking at high positions and positive funding rates might think, “The trend is strong, maybe I should go long,” or “The market is overextended and may be reversing.” Their perspective is probabilistic. The manipulators who control the spot price have a definitive perspective. They know they can force down prices. Their question is not whether the reversal will occur, but when it will trigger its most profitable range, which can be “cut” in human terms. The growing number of positions tells them that the number of leveraged positions is increasing. High funding rates tell them that the direction of these positions is overwhelmingly unilateral. The combination of these two indicators makes…