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Basic Market Manipulation on KuCoin: $50,000 Margin with 10x and 25x Futures (don’t do this) but maybe

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by COINS NEWS 80 Views

how to turn 100,000 into 275,000 in 10 minutes

So, let’s talk about how someone might try to make money with a little “basic market manipulation” using KuCoin’s platform.

Imagine you see KuCoin Token (KCS) with a price around $8.10, a market cap of $954.6 million, and a 24-hour trading volume of $652,998. You decide to play with margin and futures to try to cash in if the price moves.

  1. $50,000 on Margin with 10x Leverage:

    • You put in $50,000 on margin at 10x leverage. This means you’re controlling $500,000 worth of KCS. • If the price of KCS goes up by just 10%, that $500,000 position increases by 10%. But because of 10x leverage, your effective gain is 100%.

\text{Profit (10x)} = 50,000 \times 100\% = 50,000 \, \text{USD}

  1. $50,000 on 25x Long Futures:

    • At the same time, you take another $50,000 and open a 25x long futures position. Now you control $1,250,000 worth of KCS. • If KCS jumps by 10%, your position gains 250% thanks to that leverage.

\text{Profit (25x)} = 50,000 \times 250\% = 125,000 \, \text{USD}

  1. Total Profit from the Moves:

    • Combined, you make:

\text{Total Profit} = 50,000 + 125,000 = 175,000 \, \text{USD}

  1. Percentage Gain:

    • You initially invested $100,000 ($50,000 in margin, $50,000 in futures). • Your total gain is $175,000, which is a 175% increase on your starting money.

\text{Percentage Increase} = \frac{175,000}{100,000} \times 100 = 175\%

What’s Happening Here?

If you do this right when the volume is low (like a daily volume of $652,998 on a market cap of $954 million), even a relatively small amount of buying pressure or some market news could move the price up significantly. Then, you sell at the top and walk away with the profits. Simple math, right?

TL;DR: Using KuCoin’s 10x and 25x leverage, a 10% increase in the price of KCS could turn $100,000 into $275,000, netting $175,000 in profit. Basic math meets basic market moves.

KuCoin has relatively low liquidity for its KCS token compared to major crypto exchanges and assets. This is indicated by its low trading volume relative to its market cap. • This low liquidity means that significant price movements can occur with relatively modest buy or sell orders, especially if the order size is close to or exceeds the average daily trading volume.

Low liquidity (few sell orders close to the current price) → Higher chance of a significant price move.

Even if you lose the initial 50,000 of margin and get margin called you still walk away with a 75 percent profit from the futures trade. (Don’t fact check me in this or do I don’t care lol)

submitted by /u/Glum_Presentation720
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