Biggest issue are some big players that think they know it all. They think they support a newly launched DeFi project by acquiring huge bags with big pumps, but they don't seem to realize that they actually scare a lot of new smaller buyers off. What's the point for smaller buyers to buy in if they can only obtain a tiny holder % at those already pumped prices and then earn only minimal rewards from it...
Include the risk of the dump behavior like we have seen just now and new buyers might stay away even further. Dumping big bags while newly launched projects are still on rather low liquidity in the early phase of the project has a huge price impact. When new buyers look at the chart they now see the occasional pump and dump going on by these big players. Sure, traders may like it, but a project needs a lot more smaller sized diamond handed holders first, true supporters, to strengthen its liquidity pool, price stability and chart while building its use cases.
In DeFi, retail investors look at price action, charts (organic growth!), liquidity and % holder share. If something is off, they stay away, there are like 1000's of reward tokens that may have much better conditions. They pass and move on.
Well, at least true backers and early supporters that hold on get their rewards from these big moves, but waking up and seeing the price crashed by these big players... again... could, in the end, break some of them and they might be looking for a way out on the next pump. It would be a financially driven emotional decision, not a rational one.
But maybe this is what these players want. If so, and you are one of them reading this, you are not helping the project in building a healthy organic chart and a strong liquidity pool this way! You are actually counter productive. So, if and when you are buying back in, process smaller orders over longer time period. Do not pump and dump huge backs on you smaller fellow backers of the project. Please take your pump and dump behavior to a CEX where liquidity is high enough to do so. DeFi start-up projects is just not the right place for that.
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