Dog Zhuang

In the cryptocurrency sector (coin market), "Dog Zhuang" is a pejorative slang term typically referring to institutions, groups, or large fund holders that manipulate market prices through capital advantages, information asymmetry, or illegal operations to exploit ordinary investors. Below is a detailed analysis of their operation models, characteristics, and risks:

I. Core Characteristics and Identities of "Dog Zhuang"

1. Substantial Capital Strength

   • Hold large quantities of mainstream cryptocurrencies (e.g., BTC, ETH) or specific altcoins, capable of directly influencing market prices through large buy/sell orders.

   • May be professional quantitative trading teams, large investment institutions, or even interest groups colluding between project teams and exchanges.

2. Main Means of Market Manipulation

   • Pump and Dump:

     • First hoard a token at low prices, spread positive news through communities and media (e.g., "The project is about to be listed on a major exchange." "technical breakthrough"), attract retail investors to follow and push up prices (pump), then sell at high prices for profit (dump), causing prices to crash and retail investors to be trapped.

   • Fabricating False Trading Volume:

     • Create the illusion of active trading through wash trading (self-buying and self-selling) to lure retail investors into the market.

   • Wick and Liquidation:

     • In the futures market, use instant large buy/sell orders to create sharp price fluctuations (e.g., a "wick" hitting stop-loss levels), triggering retail investors' liquidations and reaping margin funds.

   • Information Manipulation:

     • Obtain insider project information (e.g., negative news) in advance, or collude with project teams to release false announcements, profiting from information asymmetry.

II. Common Exploitation Tactics

1. Altcoin/Air Coin Exploitation

• Tactic:

  • Issue valueless altcoins, raise funds at low prices through private placements, use minimal capital to pump prices after listing on exchanges, and collaborate with the promotion of "100x coins" to attract retail investors to take over the shares, then dump and run (i.e., "rug pull").

• Case:

  • Some memecoins (e.g., a new animal-themed coin) surge tens of times shortly after listing, then plummet by over 90% within days, with project teams running off with liquidity pool funds.

2. Futures Market Liquidation Exploitation

• Tactic:

  • When mainstream coins (e.g., BTC) are stable, suddenly create sharp price fluctuations through large futures orders, triggering stop-losses or liquidations of numerous retail investors on exchanges, with Dog Zhuang profiting as the counterparty.

• Typical Phenomenon:

  • BTC prices crash or surge by thousands of dollars within minutes, with exchange liquidations reaching hundreds of millions of dollars, followed by a rapid price retracement, forming a "wick" pattern.

3. Joint Exploitation of Platform Coins/Hot Projects

• Tactic:

  • Exchanges collude with project teams to provide traffic support for a token (e.g., homepage recommendation, IEO fundraising), while Dog Zhuang builds positions at low prices in advance, pumps prices after listing to attract users to buy, and then coordinates with exchanges to release massive sell orders for exploitation.

III. How Ordinary Investors Can Identify and Avoid Risks

1. Identifying "Dog Zhuang" Manipulation Signals

• Abnormal Price Fluctuations:

  • A token suddenly surges or crashes without obvious positive/negative news, with trading volume deviating from price trends (e.g., price rising but volume low, possibly wash trading pump).

• Excessive Community Hype:

  • Massive "shilling" (e.g., "hurry up, it will surge tomorrow") appears on platforms like WeChat groups and Twitter, with unknown sources, likely "paid shills" hired by Dog Zhuang.

• Abnormal Project Team Behavior:

  • The core team of a decentralized project suddenly goes anonymous, code updates stop, or whitepapers are frequently modified, possibly colluding with Dog Zhuang for exploitation.

2. Risk Avoidance Principles

• No Chasing Rallies or Panic Selling:

  • Avoid buying blindly following the short - term price fluctuations, especially for niche tokens with a price increase of more than 100%. More than 90% of the "sharp price surges" will eventually return to their intrinsic value.

• Reject High-Leverage Futures:

  • Futures trading is essentially a gamble against exchanges or Dog Zhuang; ordinary investors can hardly resist capital manipulation, with extremely high liquidation risks.

• Diversify Investments, Stay Away from Niche Coins:

  • Over 90% of altcoins/air coins will eventually go to zero. Concentrate funds on major coins (e.g., BTC, ETH) and control single investments to no more than 10% of total funds.

• Verify Project Fundamentals:

  • Truly valuable projects have open - source code (such as frequent GitHub updates), an active community, and real - world applications, rather than relying solely on marketing hype.

IV. Risk Warnings

• Legal and Regulatory Risks: Dog Zhuang's market manipulation is illegal in most countries (e.g., "market manipulation", "fraud"), but cryptocurrency regulation lags, making investor rights protection difficult.

• Essential Cognition: Behind the "myths of getting rich overnight" in the cryptocurrency circle, most are traps set by the "big players". The capital amount, information - acquisition ability, and technical - analysis ability of ordinary investors cannot compete with those of professional manipulation teams. Blindly following the trend is likely to make them become the "bag - holders".

China explicitly prohibits illegal financial activities related to virtual currencies. It is recommended that investors stay away from cryptocurrency speculation and choose compliant investment channels. If participating, clearly recognize: the coin market is not "investment" but a high-risk zero-sum game, with even the possibility of losing all principal.