Family, yesterday \(ALLO opened and taught many people a lesson - full of expectations to make quick money, but ended up getting trapped at a high position, with the group full of cries of 'what to do' and 'can it still break even?'. In fact, whether the new coin can rise is really not determined by how fiercely KOL promotes it, but by two solid hard logics. Today I will explain the reasons for \)ALLO being trapped, the pitfalls of new coin speculation, and how to break even all at once, so that you won't be a victim in the future!
First, you need to understand: whether the new coin will rise depends on two core points - whether the project party 'has the ability' and 'wants to raise'. The premise of 'having the ability' is whether the chips in the hands of the project party are concentrated enough, which directly determines the difficulty of raising prices.
Just like the $JCT from a few days ago, don't be fooled by its lack of fame as a 'three-no project'; it only has 1% of external chips, and the rest 99% are held by the project team. In this case, the project team can push the price without worrying about retail investors dumping, spending a little money can easily drive the price up, even a worthless coin can be hyped.
But \(ALLO is completely different; it has 7.5% of the chips in external circulation, and its opening market value skyrocketed to over 1 billion! Retail investors hold too many coins, and if the project team wants to push the price, once they raise it, there will be a bunch of people ready to sell off. The more aggressively they push, the greater the selling pressure, making it a thankless task. Whoever is on the project team wouldn't engage in such a losing business, so \)ALLO's opening plunge is fundamentally due to the scattered chips and inability to drive the price!
Let me give you another iron rule to avoid pitfalls: new coins advertised by a bunch of KOLs before the opening are 90% likely to be for selling off. Don't believe in 'the project team promotes because they are optimistic'. Think about it; pushing the price itself is the best marketing — once the price rises, retail investors will rush in without needing KOLs to say anything, and it can attract even more attention. If the project team really intends to push the price, they wouldn't need to spend a lot of money hiring KOLs; isn't it better to invest that money in pushing the price directly?
$ALLO before the opening, many KOLs were promoting it in their circles and communities, saying things like 'great potential' and 'must rise'. But what happened? It opened and trapped people. The logic is simple: the project team knows they don't have enough chips to drive the price, so they rely on KOLs to attract retail investors to take over, while they sell off their coins. In the future, when you see KOLs hyping up new coins before the opening, be cautious and don't rush in; it's likely a scheme to cut retail investors!
Lastly, for friends who are stuck, the most concerning issue is: what to do if you can't sell \(ALLO on Alpha? Don't panic, it's not a platform issue, it's that \)ALLO has officially entered the spot trading section, and Alpha's order book has long been closed. You need to switch to the spot trading area to sell. The specific steps are simple: open Binance, find the $ALLO trading pair, switch to the 'Spot Trading' interface, and you can place orders normally. Although the current price may not be ideal, at least you can liquidate, which is better than being stuck with it.
In fact, the hype around new coins is very deep; don't just follow the crowd because of surface excitement. You need to analyze the concentration of chips and the true intentions of the project team. Coins like $ALLO, with dispersed chips and relying on KOLs to attract customers, are inherently very risky. In the future, when encountering similar situations, you must control yourself and not follow the crowd to throw in money.
Did you get trapped with $ALLO this time? What other tricks have you encountered with new coins cutting retail investors? Let's chat in the comments and help each other avoid pitfalls! If you encounter new coins that you're unsure about in the future, you can come here to ask, don't rush in blindly!
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