Why are newly launched coins more suitable for 'watching rather than chasing highs'?
1. Airdrop and selling pressure after new listings
In the early stages of a new coin's launch, there is often a significant amount of airdrops and the release of tokens by new investors. These users have no holding costs and aim to cash out quickly for arbitrage.
At this time, the market has not yet formed an effective buying force, leading to prices being easily crushed by selling pressure in the short term.
2. Overvalued market cap, lacking support
Recent cases of several new coins reveal that:
If a project has no backing from reputable institutional investors and has a circulating market cap exceeding $100 million upon launch, it is often significantly overvalued.
The overall market liquidity is limited, lacking new funds, making it difficult to maintain early bubble valuations.
3. Early funds unloading, project parties cashing out
Private equity and early investors have very low costs, and once the opening price is far above their costs, they often sell off immediately.
Moreover, some project parties cash out at high valuations after completing market cap management, leaving retail investors to take over. Previously, multiple new coins have failed in the 'pump—cash out—crash' script, such as PUMP-type projects being a typical example.
4. Emotional collapse leading to a chain reaction
The market is highly sensitive to cases of 'project parties running away after the new coin pumps up.'
Once there is a crash or large-scale sell-off, it can easily trigger panic and spread fear, accelerating capital outflow and causing a stampede downwards.
Suggestion: During the new coin launch phase, observe before acting
Do not participate in early FOMO; wait until the trend stabilizes before evaluating value.
Pay attention to the investors behind the project, unlocking cycles, and real use cases.
If there is a serious divergence between market cap and valuation, it is better to miss out than to be trapped.
