The cryptocurrency market continues to attract investors looking for high returns, especially with the launch of new crypto assets. However, newly launched digital currencies often face extreme volatility, with significant drops shortly after their listing on popular exchanges such as Binance. Cryptocurrencies such as #ME , #ANIMECOIN , and #TRUMP , which were recently launched, are a perfect example of this dynamic.

Why do new coins fall so fast?

There are several reasons why new cryptocurrencies fall dramatically after their debut on the market. Here are the main factors:

1. Initial Hype and Volatility

When new cryptocurrencies like #ME,#ANIMECOINand#TRUMPare launched, there is a lot of hype generated by investors and the project's community itself. This causes the price to rise rapidly before or during the first few hours of listing. However, what usually follows is a massive sell-off of tokens by early investors or "whales", who take advantage of it to take profits, resulting in drastic drops.

Example: After its listing on Binance, #ME initially spiked in value due to high speculative demand, but faced a significant decline as early investors liquidated their holdings.

2. Market Manipulation

New assets are particularly vulnerable to practices like “pump and dump,” where the price is artificially inflated to attract more investors, only to plummet after large, coordinated selloffs. Less transparent or illiquid projects like #ANIMECOIN can be easy targets for such schemes.

Furthermore, organized groups of investors and large token holders (so-called whales) can manipulate the market, exacerbating price fluctuations.

3. Lack of Project Justification

Not all new crypto assets have a clear utility or technological differentiation. Coins like #TRUMP may be launched based on trends or public figures, but without a solid use case. This makes their value highly speculative, making it difficult to sustain high prices in the long term.

4. Investor Psychology

Inexperienced investors often enter the market driven by FOMO (fear of missing out). They buy at the top, during the hype, and sell at the bottom, when prices start to fall. This amplifies the declines even further and makes the market for new coins even riskier.

5. Risks on Exchanges

Although Binance is one of the largest and most trusted exchanges, the crypto market still lacks robust regulation. This allows some coins to be listed without a thorough analysis of their potential, which can lead to price manipulation and losses for investors.

How to protect yourself when investing in new cryptocurrencies?

Investing in newly launched cryptocurrencies requires caution and in-depth research. Here are some tips to minimize risks:

1. Research the project: Check out the whitepaper, use cases, and the team behind the coin. Solid projects are more likely to stand out in the long run.

2. Avoid the initial hype: Wait for the market to stabilize after listing, rather than buying at the speculative peak.

3. Diversify your investments: Don’t put all your resources into a single asset.

4. Choose reliable exchanges: Choose platforms that are well regulated and have greater transparency.

5. Monitor the whales: Track the movements of wallets that hold large amounts of the asset.

While newly launched cryptocurrencies like #ME, #ANIMECOIN, and#TRUMPmay seem like an enticing opportunity, they also pose significant risks, especially for inexperienced investors. Extreme volatility, coupled with practices like market manipulation, can quickly turn a promising investment into a loss. Therefore, it is essential to make informed decisions and not get carried away by the hype.

The cryptocurrency market offers opportunities, but it also requires prudence and preparation to avoid pitfalls and maximize long-term gains.