Alpaca Finance (ALPACA) has defied expectations with a remarkable increase in its price following the news of delisting by Binance, soaring by over 1000% in a week. This unexpected market behavior has triggered debates among analysts and traders, with many suggesting that it might be a result of market manipulation.
Typically, when a token gets listed on Binance, it is viewed as a positive signal, leading to price hikes due to enhanced visibility and liquidity. However, the recent scenario contradicts this trend. Despite Binance's delisting announcement on April 24 that included ALPACA among four tokens, the token's value skyrocketed while others declined. Data from BeInCrypto indicates a significant surge in ALPACA's value over the past seven days.
Although the momentum seems to have slowed down as the delisting date of May 2 approaches, ALPACA's price dropped by 34.5% in a day, currently trading at $0.55. This unusual surge has attracted the attention of market observers, suggesting potential manipulation tactics.
Experts have highlighted that the sharp price fluctuations possibly indicate a strategy known as liquidity hunting, where large investors intentionally reduce the price to induce panic selling before pushing it up quickly. This maneuver allows them to extract liquidity from the market efficiently. These market practices emphasize the importance of thorough research, vigilance, and stricter regulatory measures to safeguard investors from predatory tactics in the evolving crypto landscape.