The Underground Front of “Following KOLs”: The Truth Behind the Hype Buy-Sell Calls in Crypto

At the end of 2022, while the market was still reeling from the collapse of FTX, a phenomenon few noticed was taking place: the “buy-sell signals” from famous KOLs on social media were becoming the compass for thousands of new investors entering the market.

But most people didn’t know that behind those calls was a sophisticated operating mechanism, designed to maximize profit for the signal-giver—and minimize the survival rate of the followers. Today, the idea of “follow KOLs to make easy money” has become the most dangerous illusion in the crypto market.

The Perfect Scenario of a “Signal Call”: When Trust Becomes a Market Tool Many KOLs frequently promise “10x bets,” “x100 gems,” “explosive ecosystems”… but behind these words is a deliberately repeated process:

1. Silent accumulation phase The KOL opens a position in advance, while the market isn’t paying attention or before the news is hyped up. They accumulate the amount they want to hold before moving to the next step.

2. Triggering the FOMO effect Once their position is set, they release “exclusive analysis,” “insider info,” “big news coming…” to the community and various channels to pull in FOMO-driven capital.

Familiar phrases are used: “Whales have finished accumulating” “Last buy zone” “About to list on a major exchange” “Smart money is flowing in”

3. Selling in waves When the price is pumped up by the community’s buying power: First: Sell a portion when the price rises 15%–20% to recover their capital. Second: Dump most as the uptrend is strong. Third: Sell everything when the crowd is at peak excitement.

By the time small investors realize they’re “left at the top,” the price has plummeted and the KOLs have disappeared with safe profits in their pockets.

4. A more sophisticated version: sending opposite signals to different groups Some KOLs even play a “multi-directional” strategy: Group A: Told to LONG Group B: Told to SHORT It doesn’t need to be right—just having one side win is enough to retain them for the next fundraising round.

Why Following KOLs Becomes the “Soft Blade” That Cleans Out Accounts In traditional finance, publicly calling for buys or sells without transparency about positions can be considered manipulation. But in crypto—a decentralized and unregulated environment—this happens every day.

Main reasons why investors are easily led: Lack of experience reading the market Inability to independently plan trades The “if others can profit, so can I” mentality The allure of get-rich-quick stories

Result: countless accounts are “sliced up” and the owners don’t even know why.

“Counter-Trading” KOLs: A Survival Tactic, Not an Easy Money Strategy Although many traders think counter-trading KOLs is safer, in reality, it’s not that simple. Counter-trading only works with discipline, data, and risk management.

Here are some practical principles:

1. Create a “red list” based on data Instead of emotional following, track KOL performance: If a KOL consistently gives wrong signals, especially at reversal points, their positions may become a reverse indicator for the market. When they cut losses, it’s often when the market starts moving strongly in the new direction.

This isn’t superstition—it’s crowd behavior analysis scaled down to an individual.

2. Apply a minimum 15-minute delay before acting Most KOL-induced pumps last only the first few minutes: Those who jump in immediately often buy at the weakest moment. After about 10–20 minutes, the price starts to correct and the real trend becomes apparent.

A delay acts as a “risk filter” to avoid getting caught in a fake spike.

3. Limit losses: maximum 5% of total account per trade No strategy is right 100%. No indicator is perfect. No KOL wins forever. Limiting losses is the only way to ensure traders have capital left to survive the next round.

The Biggest Psychological Trap: Seeing Winners—Not Losers When an account publicly posts large profits from a counter-KOL trade, thousands think this is an “invincible” method. But:

The winners are only a few. The losers often quietly leave the group, lock their accounts, or never reveal results. Every dollar of profit comes from someone else’s loss in a truly zero-sum market.

Behind every right-timed trade are stories of lost capital, even debt due to high leverage.

Conclusion: Following KOLs Is Not a Shortcut—But a Broken Bridge Leading to the Abyss In the crypto market:

No one truly leads for free. No trade is a guaranteed win. No strategy is absolutely risk-free.

The only thing investors can control is their own knowledge, discipline, and capital management.

Key reminders: Don’t see following KOLs as a shortcut to success. Don’t mistake luck for skill. Don’t use borrowed money to gamble with your future.

In a volatile environment like crypto, preserving your capital—that’s winning.