Crypto飞哥
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Patiently waiting for the reversal of the altcoin market
Recently, observing the situation of new coins being listed on Binance, I can indeed sense some subtle changes in the market. In the past, for a coin to be listed on Binance, it needed at least a market cap of 200 million as a baseline; now? Even coins with a market cap of over 100 million are rare. What signal does this convey? The market's water level is declining, and the rules of the game may be quietly changing.
Looking back, most tokens listed on Binance were 'peaking upon listing', then continued to plummet. The project parties and VC investors took the biggest slice of the pie, waiting for the retail investors in the secondary market to take over, after which prices began to collapse, leaving almost no chance to breathe. This model ultimately harms retail investors in the secondary market; in essence, it is a 'winner takes all' scenario — the project party wins, VCs might also win, but secondary investors are basically the ones being harvested.
But what if we think differently? Suppose new coins on Binance have a low market cap, say, less than 100 million, allowing the secondary market space to speculate and discover value. Initially, with a low price, funds slowly enter, quality coins stand out, spiral upwards, creating a wealth effect and providing more opportunities for profit in the secondary market. In this way, secondary market investors can profit, project parties can profit, VCs can profit, and even overall market liquidity can improve — this is a 'win-win' scenario.
What is the core principle of the market? A winner-takes-all business model is destined to be unsustainable. Project parties clean out the market, leaving no room for the secondary market, which will naturally deteriorate. Over time, retail investors will be unwilling to enter the market, liquidity will dry up, and the whole market will fall into a vicious cycle. This round of crazy dumping of altcoins is the root cause of the market's lack of profit potential.
When everyone unanimously believes that 'there is no profit to be made in the altcoin secondary market', the market's singularity moment is approaching. Because when the market falls into absolute pessimism, and aside from Bitcoin, no one is willing to touch other coins, the valuations of other coins will be continuously compressed, pushed to the lowest point possible. At that time, funds will rediscover opportunities, and the market will rekindle hope. This is the cyclical law of the market; all rises and falls reflect emotions.
When will this critical point be reached? No one can predict accurately, but one thing is certain — the market cannot operate in the same mode forever. Do not fear the current market decline; this is just the pain of a trend reversal.
Recently, observing the situation of new coins being listed on Binance, I can indeed sense some subtle changes in the market. In the past, for a coin to be listed on Binance, it needed at least a market cap of 200 million as a baseline; now? Even coins with a market cap of over 100 million are rare. What signal does this convey? The market's water level is declining, and the rules of the game may be quietly changing.
Looking back, most tokens listed on Binance were 'peaking upon listing', then continued to plummet. The project parties and VC investors took the biggest slice of the pie, waiting for the retail investors in the secondary market to take over, after which prices began to collapse, leaving almost no chance to breathe. This model ultimately harms retail investors in the secondary market; in essence, it is a 'winner takes all' scenario — the project party wins, VCs might also win, but secondary investors are basically the ones being harvested.
But what if we think differently? Suppose new coins on Binance have a low market cap, say, less than 100 million, allowing the secondary market space to speculate and discover value. Initially, with a low price, funds slowly enter, quality coins stand out, spiral upwards, creating a wealth effect and providing more opportunities for profit in the secondary market. In this way, secondary market investors can profit, project parties can profit, VCs can profit, and even overall market liquidity can improve — this is a 'win-win' scenario.
What is the core principle of the market? A winner-takes-all business model is destined to be unsustainable. Project parties clean out the market, leaving no room for the secondary market, which will naturally deteriorate. Over time, retail investors will be unwilling to enter the market, liquidity will dry up, and the whole market will fall into a vicious cycle. This round of crazy dumping of altcoins is the root cause of the market's lack of profit potential.
When everyone unanimously believes that 'there is no profit to be made in the altcoin secondary market', the market's singularity moment is approaching. Because when the market falls into absolute pessimism, and aside from Bitcoin, no one is willing to touch other coins, the valuations of other coins will be continuously compressed, pushed to the lowest point possible. At that time, funds will rediscover opportunities, and the market will rekindle hope. This is the cyclical law of the market; all rises and falls reflect emotions.
When will this critical point be reached? No one can predict accurately, but one thing is certain — the market cannot operate in the same mode forever. Do not fear the current market decline; this is just the pain of a trend reversal.
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