"It’s a bad coin," say some, "It’s a scam," proclaim others.
Neither a bad coin nor a scam, it was the accumulation of inexperience, lack of focus, and greed.
Let me explain better; The strength of Redstone or $RED is undeniable, and it will provide surprising support, especially for #DeFi so why did its price fall? Because most (not all) of those who have traded it these days have been people with very little experience in cryptocurrency trading and even less experience in the field of presales.
Most completely forgot the 2 pillars that supported a great profit through Redstone.$RED
Pillar 1: This is a presale, an exclusive presale within the Binance community, it is not an open market. How do you operate in cryptocurrency presales? Just like in any presale of other goods, you buy and hold.
Pillar 2: The number of tokens offered for the presale was only 40 million tokens, to put into context how small this amount is, if we imagine an average of 50 tokens per buyer, this means there could only have been 800,000 buyers, if Binance (according to their data) operates in an average of 100 countries, that amounts to 8000 buyers per country. With this, we realize how tiny that amount of 40M is. INEXPERIENCE
What happened?
That Binance allowed several price control periods and the last period still consists today, in the release of the price, but it is still in presale, not opened to the market (it will open on March 6). However, many people started trading as if it were an open market, forgetting that we are still in presale. LACK OF FOCUS.
After that, when the price control was released and the coins were allocated to the buyers, the price quickly reached $1.46 and at that point, the available amount of tokens ended and at the same time, many traders with more experience (conscious or unconscious that we are in presale) began to sell to make quick profits and pursue the dream of "wealth in a day". GREED
Given such a small supply of tokens, the price variation was more clearly noticeable, with sharper jumps than what is seen in an open market with hundreds of millions of tokens available. This created 2 situations, bewilderment at seeing that the price was no longer rising, contrary to what many "gurus" projected and, worse yet, was dropping relatively quickly. Introducing a fourth actor: PANIC.
Why were there "gurus" who aimed for prices of $5 or more?
Because it was about gurus with little experience who also got distracted and forgot that it was a presale (perhaps because it was the first one by Binance).
With the panic mentioned, massive selling began and capital exit, bringing $RED to the prices we see today.
What would have been the ideal scenario that would have led us all to obtain good profits?
The presale starts, no one gets distracted or forgets that we are in presale and only buy at the fastest available price.
The price rises to $1.46
Everyone holds their positions (HOLD, HODL, or whatever you want to call it).
That price and capitalization set a benchmark for the market opening with 280,000,000 (280M) tokens. When starting the sale in the open market, that price would be the index of the beginning of demand from buyers who would start trading with $RED on other exchanges and also on Binance, making the price rise even more, allowing the dream of "wealth in a day" to be a little closer to reality.
What’s next?
Binance said this presale was a test, and maybe they will do more, maybe not. But if they keep doing it, and we all learn from this experience for next time, maybe we will do better and only do what is done in a presale, buy and hold. And once the market opens, now yes hold for a little longer until the explosive process that every coin has when it hits the market and starts to generate good profits is over.
Let’s learn from the mistake made.
