One major reason why retail investors find it difficult to make money in this cycle is: Token Economics

Do you remember what attracted retail investors to cryptocurrencies?

If you are honest with yourself, you have to admit:

The core motivation for diving into the crypto world is nothing more than the desire to hit a few 10x or 100x coins.

But token economics is like a cruel game with hidden rules; it is a carefully designed trap for retail investors:

The project teams and early investors hold absolute advantages, and when the tokens finally flow into the hands of ordinary investors, you find that the tokens have already reached unsustainable highs.

Project teams, venture capital firms, and early investors often enjoy floating profits of 100-1000 times, but they need enough 'retail investors' to take over to cash out smoothly. So how do they make retail investors willing to take over? The answer is information advantage and FOMO; you can't deny that almost all the tokens you got stuck with during a bull market were purchased due to market FOMO.

Many retail investors are even reluctant to check how shocking the gap is between the initial circulating market value and the fully diluted market value; many retail investors have no idea that their tokens might have billions or even tens of billions in market value unlocking above them in the future.

Most disappointing for retail investors is when after thorough research and selection, they discover that the project they are confident in—due to its fundamentals, high development potential, and strong team—seems to be a leading market investment, or one that could bring them several times or even tens of times returns. Yet, they find that behind its tokens lies a huge unlocking volume and terrifying fully diluted market value.

The crypto market has ultimately formed a stark survival rule—while there indeed exists a feast of wealth that multiplies by hundreds or thousands, the main seats at the table never belong to retail investors. Most of the dividends from token appreciation were already divided up by insiders during the private placement stage.

Unless we force project parties and institutions to change their predatory token economic designs and break the current game rules, decentralized wealth distribution will always be a joke.