NYC Token Manipulated by Insiders: Project Team Cashes Out at Highs, Takes Over at Lows, Profiting Over $1 Million

Based on on-chain data monitoring from Bubblemaps, there is clear evidence of suspicious manipulation behavior by the NYC token creator. This creator removed approximately $2.5 million USDC liquidity at the token’s market cap peak, and after the price dropped 60%, they re-added about $1.5 million USDC, profiting over $1 million. This is a typical insider manipulation case, reflecting the risks present in some token projects.

Complete Process of the Manipulation Method

Cashing out at the high point, buying in at the low point

The manipulation logic of the NYC token creator is straightforward: when the price is high, they cash out by removing liquidity, which directly reduces market liquidity and usually puts downward pressure on the price. After the price drops 60%, they re-enter by adding liquidity at a lower price, effectively buying in at a discount.

The key to this manipulation method is timing. The creator has inside information about the project and can judge the high and low points of the price, allowing them to execute cashing out and buying in at the optimal moments.

Data comparison

Risks of This Kind of Manipulation for Investors

The cost of information asymmetry

Project teams hold internal information and development plans, giving them an informational advantage to accurately judge price movements. Ordinary investors often buy at the high points when the project team is cashing out, and sell at the low points when the team is buying in, becoming the “bagholders” of this manipulation.

Looking at the NYC case, investors may have been attracted to buy at the high point, only to experience a 60% decline, while the project team profited over $1 million through this process.

The prevalence of liquidity manipulation

Such manipulation is not an isolated case. According to recent reports, similar liquidity manipulation events frequently occur in the crypto market. For example, in the WhiteWhale project, a whale wallet suddenly sold $1 million worth of tokens after 30 days of dormancy, causing the price to drop 20% instantly. This also reflects how project insiders profit through liquidity operations.

How to Identify and Prevent These Risks

Monitor on-chain data

Tools like Bubblemaps can track liquidity changes. Investors should regularly check:

• Liquidity increases or decreases in project wallets
• Timing of large liquidity movements
• Trends in project holdings

Be alert to abnormal operations

When a project team significantly adjusts liquidity in a short period or removes liquidity at high prices, it is often a warning sign.

Assess project transparency

Trustworthy projects usually lock liquidity or commit to long-term holdings. If the project team frequently adjusts liquidity positions, exercise caution.

Summary

This NYC token case clearly demonstrates how project teams can profit from liquidity manipulation at the expense of investors. The tactics of cashing out at the high point and buying in at the low point are not complicated but can cause real losses for ordinary investors. It reminds us that before participating in token investments, we should learn to use on-chain data analysis tools, pay attention to the actual operations of the project team, and not rely solely on their promotional promises. Similar liquidity traps are not rare in the crypto market. Staying vigilant and learning to recognize these risk signals is an important step in protecting your assets.