Altcoins are rising against the trend, project teams are harvesting retail investors for survival!
Recently, altcoins have been rising a bit strangely, clearly without any positive news. I mentioned before that the cryptocurrency market is now severely polarized; those with some capital are all flocking to mainstream coins. Why? They are truly scared by the market. Mainstream coins at least give a glimpse of profit potential, while altcoins are just pure waste. But here comes the problem—what’s the reason for this irrational surge?
The key lies in the market data. Those popular altcoins that were once in the spotlight have seen their daily trading volumes drop to tens or hundreds of thousands of USD; this is not trading at all! It’s simply a ghost market! I’ve said before that this is a psychological battle between institutional investors and retail investors, both waiting for the other to blink first. Now, retail investors have all run to mainstream coins for safety, and altcoins are losing their reason to exist, especially newly launched altcoins, whose listing costs have not even been recovered. Can the project teams not be anxious?
The ones suffering the most right now are not us retail investors, but the teams issuing coins. Thousands of projects are queuing up to be listed on exchanges every day; development and maintenance cost money, and listing fees are astronomical. As a result, once they get listed, they find no one is interested. Doesn’t that mean they’ve wasted their money? Can they avoid pumping the price? Without luring in some retail investors to take over, they can’t even pay their electricity bills!
Ultimately, this market is a vicious cycle: retail investors lose money → institutions lose money → project teams lose money. This year, even exchanges are having a rough time; isn’t this quite a show? No matter how the wind changes, we are still stuck in this situation, taking hits while putting on a brave face. If you ask me, this round of surge is just the project teams struggling to survive; if retail investors don’t take this bait, they’ll have to pawn their shorts. Just wait and see, this competition to harvest retail investors has just begun.
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