Anti-Dumping Policy
Dumping is the term used when large investors, i.e. whales, buy large numbers of coins to further increase their earnings before selling all of their investments. Anti Dumping Policy is the rule that prevents the investment instruments from falling in value when their price is increased much higher than their value and suddenly large investors sell their investments.
For a better understanding of Anti Dumping Policy, you can think of it as follows. There are only ten thousand a cryptocurrency and all of them are available for trading on the market. Its total value is ten thousand dollars. If one of the big investors comes and buys the majority of this crypto money, the price will rise suddenly because the supply will decrease. In this case, other investors will see this cryptocurrency rise and invest. With the investment of other investors, the value of this cryptocurrency will increase greatly and the big seller who has the majority will sell the crypto money in their hands when they are high value. When the whale sold the crypto money in his hand, the value of the money would drop in an instant. In the end, the big investor we mentioned will make high profits, while other small investors will lose. That’s why Anti Dumping Policy is very important for investors.
Things to Consider Before Investing
- Before investing in platforms and cryptocurrencies that do not have an Anti-Dumping Policy, you should follow the social media groups that talk about whale moves and share these signals for free.
- Avoid investing in amounts that will upset you when you lose and make your life difficult. If you’re lucky, you can make good profits from dumping, but you’re also likely to lose all your money in the end. Investing in the worst-case scenario will be the best choice.
- It will be healthier to get support from an expert guide when investing with high budgets. There are Twitter accounts, Telegram group channels, and subreddits that constantly talk about possible whale transactions. They may warn you in dumping moments and prevent you from harming.