$RIVER 21st century's biggest conspiracy — funding fees

As the name suggests, perpetual contracts never have an expiration date, and do not require delivery, so funding fees are needed to keep the spot and contract prices aligned. This concept is actually very genius.
When the contract price is less than the calculated spot mark price, the funding rate is negative, with shorts paying longs, encouraging longs to open positions and shorts to reduce, thereby pushing the contract price higher and bringing the two prices closer together, and vice versa.
But the problem lies in the fact that the trading scale and liquidity of the spot market and the contract market are completely different. So as long as the project team or market makers hold a large amount of spot, the liquidity in the spot market becomes even more tight.
If previously the project team or market makers secretly accumulated long positions in the contract market, this is not difficult to achieve, simply by continuously placing orders in the contract market and slightly manipulating the spot market. Then, with a small amount of funds, they can push up the spot market, causing the contract price to rise accordingly. The more they manipulate, the higher the control, and the greater the profit from the contract.
After entering the top gainers list, many shorts are attracted, and the spot price is still rising, creating a price gap. The funding rate begins to turn negative, but this is not enough. The market manipulators directly push the rate to -2, maintaining it for a period of time, turning the funding rate into a one-hour cycle to continuously harvest shorts.
At this point, the biggest conspiracy begins. If shorts do not close their positions, the market manipulators can use the hourly funding fees to further push up the spot market. Shorts will only become more亏损, like frogs boiling in hot water, eventually dead. If shorts close their positions, it will only continue to push up the contract price, providing an opportunity for the manipulators to exit. Neither closing nor not closing is correct.
To attract shorts, the project team will continuously release various messages during this rise, such as a large amount of spot collateral being released, urging everyone to short quickly. Or artificially creating a large red upper shadow candlestick, attracting right-side short sellers to enter, leading to a tragedy.
For everyone's health, stay away from projects with 1-hour funding fees and no spot holdings. $RIVER