In the ever-changing cryptocurrency market, behind the seemingly golden opportunities lie countless risks. Among them, outdated altcoins and unlimited issuance coins can be considered market tumors, causing numerous investors to lose their entire investments due to falling into traps. This article will deeply analyze the fatal characteristics of these two types of coins to help you avoid investment minefields!
1. Outdated altcoins: 'Digital zombies' with stagnant technology
These types of coins are like walking corpses, already eliminated by the market, yet still use false gimmicks to attract uninformed investors:
- Technological stagnation: Code has not been updated for years, unable to adapt to industry developments, completely falling behind in the wave of blockchain technology iteration;
- Community extinction: Telegram, Twitter, and other communities have become 'dead groups', with the project team remaining silent for a long time, lacking user interaction and ecological construction;
- False marketing: Frequently riding on trending concepts (such as AI, metaverse) but with no actual application, relying entirely on empty promises to maintain hype;
- Delisting risk: Due to poor liquidity and compliance issues, exchanges may forcibly delist them, and once trading channels are lost, the price can instantly drop to zero.
Warning of the outcome: The price keeps falling, ultimately not even giving a stop-loss opportunity; the project team runs away with the funds, and the tokens become worthless 'digital garbage'.
2. Unlimited issuance coins: 'Harvesting machine' manipulated by the manipulators
These types of coins can be regarded as a wealth shredder for investors, essentially serving as the project team's 'withdrawal tool':
- Unlimited inflation: Tokens can be issued without limit, like a 'printing machine', leading to massive sell pressure after unlocking, causing the price to collapse;
- Capital harvesting: Early investors and team members cash out frantically, shifting the risk to retail investors who blindly chase the price;
- Value drops to zero: The more tokens held, the greater the loss, with the inflation rate far exceeding fiat currency, rendering the tokens worthless air.
Warning of the outcome: The coin price continues to decline over a long period, with occasional rebounds being good exit opportunities; every penny invested by retail investors becomes the property of the manipulators.
Real cases of severe losses serve as warnings
- OMG: Dropped from a peak of $20 to $0.2, a decline of up to 99%, with countless investors losing everything;
- STRAT: Once reached $32 as a 'star coin', now nearly worthless, completely reduced to historical dust;
- FIL: Token unlocking triggers a crash, retail investors get deeply trapped in repeated volatility.
Three investment commandments: Protect your principal and stay away from traps
Beware of low-price temptations: 'Floor price' does not equal a buying opportunity, it may be a bottomless pit;
Refuse to pay for nostalgia: Technology and ecology are the core of value; do not pay for the 'memory killing' of outdated projects;
Avoid inflation traps: The essence of unlimited issuance coins is plunder; the longer you hold, the greater the loss.
The cryptocurrency market presents both opportunities and risks; only by maintaining rationality and rejecting greed can you navigate steadily through the waves. Remember: Avoid toxic coins to protect your hard-earned money!
