usually it is used as a place for whales to play for profit by making the price rise, while after many people are hooked and enter, the whale slowly starts selling its assets little by little until the price is cheap. so my advice when there is a new coin is to be careful.
If an altcoin gets listed in a major exchange such as Binance and Huobi, then there is not much the whales can do. They can manipulate the prices, in case the coin/token is listed in only a few minor exchanges and only in case the liquidity is very limited. If the trade volumes and the number of traders are high, then it becomes very difficult to manipulate the exchange rates.