Today, I will share a low-risk method for accumulating capital—picking up trash.
The principle is simple: where attention goes, money follows.
Typically, the assets we encounter on the chain can be divided into four categories:
1. News-related 2. Concept/Narrative 3. Application 4. Pure meme
As we all know, pumps are huge news generators, and many news stories attract attention when they emerge—developers issue tokens—retail investors push prices up—hype diminishes—token prices go to zero.
Why is picking up trash considered a low-risk strategy? Let's analyze the holders of a token that has gone to zero:
1. Those who are too lazy to cut their losses after significant losses; a person who has lost 90% is unlikely to care whether they lost 85% or 95%, unless they break even or the token price increases several times. Such individuals won't sell, so this part of the selling pressure is non-existent.
2. Potential cabals (if any exist); a token that has gone to zero may still have some cabals holding large amounts of tokens, waiting for a hot topic to attract market attention. These individuals will only quietly accumulate tokens and will not sell the token at all.
3. Those who pick up trash before you; since picking up trash involves a very small amount of capital, and not many people participate in picking the same asset, their usual strategy is to double their investment. If they do not want to sell all their holdings, they will not have a significant impact on the market.
In conclusion, a token that has gone to zero essentially has no selling pressure. Of course, the term 'zero' here is relative; some may be at 100k, some at 300k, and some at 1m. One can use its historical low as a reference, after all, it has already dropped by 90%, and those who wanted to sell have long since done so, making a panic sell-off unlikely.