Various rumors are flying about the PI going live!

The coin hasn't launched yet, but various operations have already come out!

The opening price was $2, which instantly peaked at $3.4, but now it has dropped to $1.3~~~ A brother whose head was kicked by a donkey bought at an average price of $2.8.

Mainstream coins have been recognized by the market and are fraught with risks, let alone coins that are only recognized and launched by certain platforms!

So it's better to avoid these speculative coins and air coins! Newly launched cryptocurrencies (or tokens) usually come with higher risks, and ordinary investors need to be particularly cautious.

Here are the main reasons I've summarized for not investing in new coins!

1. The core reason not to easily invest in new coins

1. Price volatility is severe

- New coins have a small circulation and low market value, making them easily manipulated by a small amount of capital, with prices potentially soaring or plummeting in a short time.

- For example: Certain new coins may drop by more than 90% within a few hours due to a dump by the whales after being listed on exchanges.

2. Doubts about project reliability

- Many new projects lack a clear business model or technical implementation scenario and rely solely on hype (such as riding on trends and false advertising).

- Beware of “anonymous teams” or teams that are well-packaged but have no track record, as they may be scams.

3. Liquidity risk

- New coins may only be listed on small exchanges with poor trading depth, making it difficult to sell after buying or leading to significant price drops when selling.

4. Market manipulation and fraud

- Pump and Dump: Whales first drive up the price to attract retail investors, then suddenly sell off.

- Scam Token: Code restrictions prevent selling, so investors can only buy but not sell.

5. Technical risks

- Smart contracts that have not undergone security audits may have vulnerabilities, leading to fund theft (for example, several DeFi projects lost hundreds of millions of dollars in 2021 due to vulnerabilities).

6. Regulatory uncertainty

- New projects may be suddenly delisted or sued due to compliance issues (such as the SEC's forced delisting after classifying certain tokens as “securities”).

7. Token distribution is opaque

- A large number of tokens may be reserved for the team or early investors, and selling after unlocking can lead to price crashes.