Few things i want to point out. By my calculations, circulation inflation was 35.52mil ICP, 2.96mil ICP per month, thats 8.8mil at 3 usd (at 6, 16mil usd) spot sell pressure per month. Buyers cant keep up with sellers, liquidations are problem too. As chart shown constant long liquidations, who the hell loses constantly that money. Only way its so called good if exchange purpously liquidates itself. Instead of using real usd, they use borrowed ICP (Binance earn). When position is liquidated, price will cascade down more than borrowed amount. Lets say 100k ICP was borrowed, they liquidate own position, this triggers other people longs to liquidate as well. Exchange ICP is sold first, than other people positions. Exchange now buys from spot all needed tokens back 100k and return to earn wallet. Profits can be used to pump BNB. So why exchange want to do it, its because making profit, destroying competition or even collecting project tokens.
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Why ICP and not other projects? Is it because other projects have market makers who would prevent this from happening?
Yes, Dfinity should have its own market maker. When Binance liquidated everyone, there was news article that market makers suffered losses because they where locked out and could not remove buy orders. This means with current market makers, if trend turns to sell, they remove spot buy orders and price can dump lot harder.
But thats the point
Market makers help keeps trading liquid thats all their job is, so people can buy and sell more easily without so much fear of being dumped on.