🚨 The 7 Signs of a Collapse in the Crypto Market (with Real Examples)
Abrupt drops of 80%, 90% in minutes do not happen out of nowhere. The market usually gives clear signals before a collapse. Here are 7 alerts — with examples — to avoid being caught by surprise:
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1. Exaggerated and Rapid Rise
Example: Terra (LUNA)
Before its collapse in 2022, LUNA rose thousands of % in a few months without solid fundamentals. When the UST ecosystem broke, the price plummeted nearly 100%.
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2. Whale Concentration
Example: FTX Token (FTT)
In 2022, few investors held vast amounts of FTT. When FTX collapsed, the token fell more than 90% within days.
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3. Low Liquidity in the Books
Example: Bitconnect (BCC)
During the 2018 collapse, there were no buyers in the order book. A mass sell-off was enough for the price to go to zero in minutes.
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4. Euphoria on Social Media
Example: SafeMoon
In 2021, extreme hype and “to the moon” dominated Twitter. After the initial profits were realized, the token violently plummeted.
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5. Uncorrected Rises
Example: Squid Game Token (SQUID)
Shot up 75,000% using the name of the Netflix series without authorization. Soon after, the developers “slipped away” and the price reached nearly zero.
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6. Doubtful News and Announcements
Example: Verge (XVG)
In 2018, they announced partnerships with major adult sites (like Pornhub) that never materialized. The pump in price was followed by a dump shortly after.
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7. High Volatility
Example: MANTRA (OM)
In the days leading up to the collapse, the token experienced violent fluctuations (sharp rises and falls), and, on a Sunday, it dropped 90% in minutes.
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⚠️ Conclusion:
Cryptocurrencies rarely fall without warning. If you identify 3 or more of these signs at the same time, sound the alarm and protect your capital before it's too late.