《New Cryptocurrency Launch: The Risk Logic and Market Game Behind Price Manipulation》
The cryptocurrency market is like a mysterious vast ocean, shrouded in instability and uncertainty, making it difficult for investors to see its true form. Its allure and risk stem from the boundless fluctuations in price, akin to a double-edged sword, capable of making investors instant millionaires, but also plunging them into debt overnight.
Taking Dogecoin as an example, it is a digital currency that emerged from internet culture. When it first entered the market, it faced many doubts due to a lack of practical applications and insufficient public awareness, resulting in extreme price volatility and a potential risk of crashing. However, driven by social media hype and speculative funding, its price soared like a rocket, attracting a flood of investors, including many retail investors who entered blindly. But soon after, the major players quietly cashed out at high prices, causing Dogecoin's price to plummet, leaving many retail investors stuck at high levels with significant losses.
The price trend of newly launched cryptocurrencies is like an unknown beacon swaying in the fog, full of variables. Although they often face risks of crashing or sharp declines due to a lack of market validation and trust, investors' perceptions are often blurred, and emotions are prone to fluctuations, most will not fall straight down; otherwise, trading volume and market heat will quickly diminish.
In the market's operational logic, new coins often have powerful financial forces behind them. At the initial launch stage, they act like behind-the-scenes operators, injecting funds to drive prices up significantly, creating a wealth effect. They may create price differences on different platforms or use media and social networks to spread positive news, attracting profit-seeking capital and naive investors to enter the market.
When the price reaches its peak, hidden major players quietly cash out. They sell at high prices with a large number of chips, controlling the pace and misleading retail investors with false signals, causing them to mistakenly believe it is a correction to hold or increase their positions. Once the major players' cash-out reaches a scale, supply and demand become unbalanced, and price support collapses, leading to a sharp decline in cryptocurrency prices. Many retail investors, lured by the wealth effect and blindly following the trend, lack risk anticipation and response strategies, have insufficient financial knowledge and analytical skills, and enter the market solely based on impulse and greed, ultimately getting stuck at high prices when the price reverses.
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