Those newcomers in the group who loudly exclaimed 'follow the official to make a profit' are now collectively silent; this operation has completely shattered the illusion that 'official support = safety net'.
As an old investor who has been in the crypto space for ten years, I must say: when institutions buy the dip and get trapped, it precisely exposes the three stark truths of the crypto world, and if retail investors do not understand these, they will eventually become 'the cut vegetables'.
Truth 1: The so-called 'bottom' is merely the 'halfway up' of the institutions.
The most ironic thing about the WLFI incident is that even the project party themselves are caught at the 'halfway up'.
Many newcomers think that 'institutions know the market better than retail investors', but the truth is that institutional money doesn’t just come from nowhere; they are also betting on the 'bottom', but with larger stakes and a more 'official' posture.
Last year, Lao Zhou invested in a certain altcoin, and the project team shouted 'support the market and buy the dip.' He believed that 'the officials wouldn't harm their own people,' and as a result, his 80,000 principal shrank to 20,000. Later, he realized: when market panic spreads, the project's capital pool is just a leaf boat in a vast ocean — they are also afraid of falling and afraid of being 'trampled' by retail investors.
Truth Two: Technical indicators? In the face of emotions, they are all 'paper tigers.'
Some people believe in 'MACD golden cross and KDJ low position buying,' but when WLFI officially bought the dip, there were no technical signals showing a drop.
Why? Because at 3 AM, when 'retail investors are the most sleepy,' once emotions are ignited, any indicator becomes irrelevant. I have personally seen a certain coin's KDJ low position golden cross, but due to a rumor of 'the project team running away,' it plummeted 50% in half an hour — when the market goes crazy, the lines are all false; emotions are the real 'nuclear button.'
Truth Three: 'Official support' is essentially a form of 'psychological massage.'
Beginners always think 'the project team won't let their own coin drop,' but WLFI couldn't hold up even after investing 10 million. Last year, the project team of a certain altcoin bought the dip for three consecutive days, but ultimately still fell below the issue price.
Why? Because the market is not 'controlled by the project team,' but rather 'determined by consensus.' The money the project team uses to support the market is but a drop in the bucket in the face of the 'tsunami of sell orders' caused by panic. What they protect is not the 'coin price,' but the 'confidence of retail investors' — but when confidence collapses, even the officials themselves become 'the bag holders.'
Finally, here are four 'life-saving mantras' for all beginners: Don't follow the crowd to buy the dip, don't bet everything, only invest up to 10% of your principal in coins officially bought at the dip, and always leave enough 'recovery funds.'
Finally, I want to say to my followers: There is no shortcut to 'guaranteed profits' in the crypto world, only a clear 'respect for the market.' If you want to avoid these 'retail traps,' remember to follow me. I will continue to unravel the 'anti-common sense' truths of the crypto world, helping you avoid ten years of detours. After all, profits are always made by a minority, and only those who see the truth can become part of that minority.
