The recent rapid surge of BIFI clearly illustrates the point. Whenever market liquidity tightens, funds start to hunt for assets with smaller market caps and lower attention. BIFI currently has a market cap of just over 20 million, so doubling its value is not much of a challenge—this is exactly the tactic of hot money.

Why are small-cap tokens easier to pump? The reason is simple: retail investors, even if optimistic, are reluctant to hold large positions due to limited risk tolerance. Conversely, the low entry cost and high efficiency of price increases make them attractive. Looking at the current derivatives market, the few assets with the lowest market caps that also have derivatives—CHESS, DF, ARK—are precisely the types with these obvious characteristics.

From a trading perspective, these tokens can be considered high-risk, high-reward short-term plays. But the key is to recognize that this is a probability game, not value investing. Proper position management and setting stop-losses are essential to seize opportunities in this wave of market movement.