How does monkey pump affect the trading volume of digital currencies?

1 answers

• Nov 24, 2021 · 3 years ago
  Monkey pump can have a significant impact on the trading volume of digital currencies, especially for smaller and less liquid coins. When a group of individuals coordinate to artificially inflate the trading volume of a digital currency, it creates a sense of FOMO (fear of missing out) among other traders. This can lead to a temporary increase in trading volume as more traders join in to take advantage of the perceived opportunity. However, once the initial hype fades away, the trading volume tends to return to its normal levels or even lower. Traders who are aware of monkey pump may choose to take advantage of the temporary surge by selling their holdings before the volume drops. Overall, monkey pump can create short-term volatility in the trading volume of digital currencies, but its long-term effect is limited and may not have a lasting impact on the market.
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