INVESTING IN TOKEN MONITORING PROFITS WITH RISKS

1. Legal Risks

Monitored tokens may be considered unregistered securities. If regulatory authorities conclude that there are violations, the exchange may be required to delist, freeze assets, or impose fines — leading to a sharp decline in token prices.

2. Delisting Risks

When a token is placed on a “watchlist” or is sued, major exchanges like Binance and Coinbase may halt trading to mitigate legal risks. This significantly impacts liquidity and the investor's ability to withdraw funds.

3. Impact on Market Sentiment

Negative news or prolonged lawsuits can cause the community to lose confidence, resulting in significant selling pressure and leading to a sharp price drop in a short period.

4. Difficulty in Relisting

Once delisted, getting a token back on major exchanges is not easy, affecting its long-term value and investment strategy.

Potential Profits

1. Low Prices After Bad News

Monitored tokens often drop sharply due to legal concerns. If issues are resolved or there is a positive conclusion from regulatory authorities, prices can rebound strongly.

2. Speculative Cash Flow

Risk-tolerant investors often seize the opportunity to “catch the bottom” to seek short-term profits, especially during technical recovery waves or “news trading” cash flows.

3. Likelihood of Winning Lawsuits or Settlements

Some projects have strong legal teams and negotiation capabilities. If a token is concluded not to be a security or reaches a favorable settlement, prices can recover quickly.