Author: Catherine
Created:
Contents
In the crypto world, LARP (Live Action Role Play) refers to a situation where someone, often a trader or influencer, creates a fake persona or narrative, typically for financial gain or to manipulate market sentiment. These individuals, known as LARPers, pretend to be someone they are not or claim to have experiences (like making millions) that are not true, often to build influence or generate hype around certain assets.
Breakdown:
- Origin: The term comes from the traditional hobby of Live Action Role Play, where people dress up and act out characters in a fantasy world.
- Crypto Context: In crypto, the "costume" is a fake social media persona or a false story, and the "fantasy world" is often the cryptocurrency market.
- Motivations:
- Hype and Manipulation: To create excitement around a specific cryptocurrency, potentially to inflate its price or dump their own holdings.
- Influence: To gain status and followers by portraying themselves as wealthy or having insider knowledge (alpha).
- Protection: To shield their real-life identity from potential risks associated with the crypto space.
- How it works: A LARPer might, for example, post on social media claiming to have made or lost millions, or they might promote a "shill" (a highly promoted, often low-quality, crypto asset) by pretending to be an expert in the space.
- Caution: The presence of LARPers is a warning sign in the crypto community. Traders should be wary of claims made by these individuals, especially during bull runs, as they are often not what they seem.
