Copied from a Telegram Group i follow
Source: https://t.me/researchcitadel/888
Rewards burnt.
"I’ve been observing this developments since the launch of the FOMO app and over the past few weeks the number of social trading copy traders has increased dramatically and KOLs use it as exit on side wallets.
From the beginning, when I saw who was behind it, I already knew where this was heading, that over time they would build trust and then exploit it in the background.
I’m not against the FOMO app in general. It’s actually a good indicator for assessing risk because you can see who is in which trade. And if you’ve been around for a while, you understand how certain traders behave and what their real intentions might be, so you know better what not to trade and what is not a long-term play. And it’s easy there to 'fake' things or structure them in a way that makes the PnL look good.
I could write an endless post about what to watch out for and how to properly analyze the data.
But at the end of the day, it’s an extraction game. As soon as someone gets “lucky,” or get a huge PnL there, people blindly follow like sheep to the slaughter, copying the trades, but no one tells you that they’re farming copy traders with side wallets.
Then later it’s: “Ah shit, I round-tripped a six-figure PnL just so none of you would suffer,” etc.
At the same time, they’re farming with their other wallets and laughing in their insider groups about how naive people are.
FOMO's advantage is that they’re connected to all the big KOLs and the shilling just keeps increasing.
Honestly, it’s easy to trade there and it doesn’t even feel like trading anymore, but that’s exactly the danger.
And I believe once the app reaches the Top 5 in the App Store, all alarm bells should start ringing.
We’re still far from that point. I think the liquidity for the next real run will come from other sources, but it will be a strong attention-peak indicator when it comes to market rotations.
I just wanted to warn you because yesterday I saw again how many people blindly walked into the slaughterhouse.
That’s why it’s always important to know how to properly evaluate information.
I’m not saying there aren’t good traders there. But most traders with real skill aren’t there, they’re operating on-chain and actively preventing smart algo systems from tracking them and keep the money in their own wallets with full control.
I hope this post can protect you and help you make better decisions.
-Your brother Arcanum 🏰"
