Alpaca Finance Surges 1,000% Post-Delisting Announcement

Following the announcement of delisting by a major exchange, Alpaca Finance (ALPACA) experienced a significant price surge, increasing by over 1,000% over the past week. This unexpected market behavior has sparked intense discussion among analysts and traders, with many suggesting that this could be a case of market manipulation.

Typically, a listing on a major exchange is seen as a bullish signal for tokens, often driving prices upward due to increased visibility and liquidity. However, recent trends indicate a reversal of this pattern. On April 24, the exchange announced the delisting of four tokens, including ALPACA. While the value of the other tokens declined, ALPACA’s price shot up. This unusual rise has grabbed the attention of market watchers, with some calling it a "textbook liquidity hunting" strategy.

Analysts suggest that large market players, or whales, initially drove the price down by 80%, triggering panic and liquidations. Then, just before the delisting deadline, they rapidly pumped the price by 15 times. This was a strategic move to extract liquidity from the market, as these whales were desperate to secure positions before the asset was removed from the exchange. The price surge was purely tactical, designed to drain whatever liquidity was left in the market.

Another analyst provided a detailed breakdown of the mechanics behind such price manipulations. Sophisticated parties exploit the low liquidity that follows delisting announcements. The strategy involves dominating a large portion of the token’s supply. The traders take large positions in perpetual futures, betting on the token’s price rising, as these contracts are more liquid than spot markets. They then buy the token on the spot market, increasing demand and price. With most of the supply controlled, there is little selling pressure, allowing the price to spike. Once the delisting occurs, the perpetual futures positions are forced to close with minimal slippage, enabling traders to lock in substantial profits.

This pattern has been observed before, especially during delisting announcements on other exchanges. In fact, delistings used to receive similar, if not more, attention from speculators as new listings. A delisting window requires closing down deposits, so with an inflow of new tokens restricted, speculators pump the price to get the last hooray before an inevitable dump. These cases have sparked debate about whether the “pump → delist” pattern is becoming a new trend. As the crypto market matures, these manipulative practices highlight the urgent need for research, vigilance, and stronger regulatory oversight to protect investors from predatory strategies.