The cryptocurrency market has been literally exploding with the emergence of new tokens like BERA lately. These projects often gain popularity in a matter of days, and their prices can skyrocket and fall just as quickly. But what exactly do these tokens have in common, and why are they causing so much noise? Let's find out.
1. Hyperactive community and social excitement
Most of these tokens are distributed through active discussions on social networks.
Creators and early investors do everything they can to generate hype: they create memes, publish teasers, and attract influencers. The louder the community, the higher the chance that the project will take off.
2. Meme culture and the lack of fundamental value
Such tokens often offer nothing new in terms of technology or utility. They are built around a joke, a trend, or simply the creator's name.
3. Mechanics of rapid growth and drain
The market for such tokens follows a classic scenario:
Insiders and developers enter first.
Traders and communities are involved at an early stage.
The price is rising rapidly due to a wave of FOMO (fear of missing out).
At some point, there is massive profit taking and the price drops sharply.
4. Listing on DEX and lack of control
Such tokens are almost always launched on decentralized exchanges (DEX). This provides quick access to liquidity, but also creates the risk of scams - developers can withdraw liquidity or issue a huge number of new tokens, devaluing users' investments.
5. Short-term volatility and risky investments
Many investors enter such projects solely for the sake of speculation. In the first days, the price can grow dozens of times, but then there is a sharp fall. It is important to understand: most of these tokens are not intended for long-term holding.
BERA and other similar new tokens are a high-risk segment of the crypto market, fueled by speculation, meme culture, and hype. They can bring huge rewards to those who get in early, but also carry significant risk for those who get in at the peak.
Before investing in such projects, it is important to understand their mechanics, be able to analyze the moment of entry and exit, and most importantly - not to invest money that you are afraid to lose.
Analyze, don't make decisions based on emotions!