Altcoins Season is truly the perfect tool for redistributing assets from retail to MM and the "big fish". This is not coincidental but a deliberate strategy repeated through market cycles.
Why is AltSS effective in asset redistribution?
1. FOMO mentality is easily manipulated
Retail investors are often swept away by large fluctuations and quick profits from altcoins. When they see x2, x5, x10 numbers, they easily overlook warning signals and go "all-in" on the market.
MM understands this psychology well and creates strong pumps in small-cap altcoins to ignite FOMO.
2. Lack of patience and discipline
Retail often does not maintain their strategy, easily selling early when profits are small or buying into high prices. This creates opportunities for MM to accumulate at low prices or offload at high prices.
3. Pump & Dump mechanism
Low-cap and thin liquidity altcoins are very easy for MM to manipulate prices.
=> MM pumps prices, creates hype, draws in more retail money, then dumps heavily.
4. How to redistribute assets through AltSS
-Preparation stage
+BTC rises sharply or remains stable: This helps build confidence that "the market is stabilizing".
+MM starts to accumulate potential wave-making altcoins, especially projects with attractive narratives like AI, Layer 2, or projects that have been forgotten.
+Price pumping stage
Some altcoins are selected to create waves first (x2, x5). These numbers are enough to trigger FOMO in the community.
At this time, MM is leveraging media, KOLs, and crypto communities to draw attention to the altcoin group.
+Distribution stage
When prices have risen sharply, MM begins to tactically offload, taking advantage of buying interest from those chasing prices.
Asset value gradually shifts from retail investors to MM.
+Recession stage
Altcoin prices begin to decline, but retail investors often hold their faith and do not cut losses, hoping that prices will recover.
Result: MM has exited with large profits, while retail suffers significant losses as the market enters a downtrend.
5. How to avoid becoming a "victim"?
-Understand the AltSS cycle
Early stage: Money flow from BTC shifts to altcoins. Top altcoins (large capitalization) often rise first.
Middle stage: Mid and low-cap altcoins begin to rise sharply, creating waves of x2-x10.
Final stage: Money flow concentrates into junk altcoins (sh*tcoins), signaling the peak of AltSS.
6. Set clear profit targets
Don't get caught up in FOMO mentality and unrealistic expectations. If profit targets have been reached, gradually take profits instead of waiting for the absolute peak.