The recent collapse of the $SPEC currency by more than 60% is due to several interconnected factors, the most prominent of which are:
1. Amplifying the marketing narrative around the "AI-backed hedge fund"
The Spectral project team heavily promoted the idea that $SPEC represents an AI-backed hedge fund, with promises of creating "intelligent agents" capable of trading independently. This marketing narrative attracted the attention of investors, especially with the general trend towards AI projects in the market.
2. Utilizing influencers (KOLs) for promotion
A number of cryptocurrency influencers were hired to promote the project, which increased the momentum around $SPEC. However, there was no tangible technical progress to support these claims, raising doubts among investors.
3. Lack of an actual product or clear technical advancement
Despite the grand promises, no actual product or technical progress was presented to justify the high valuation of the currency. This lack of transparency and advancement led to a loss of trust among investors.
4. The collapse coinciding with market highs
At a time when many cryptocurrencies witnessed significant increases, $SPEC sharply declined, increasing frustration among investors and prompting them to reevaluate their investments.