Beware of Two Types of High-Risk Cryptocurrencies
1. Obsolete Altcoins — The 'Zombie Coins' in the Market
✅ Main Characteristics
• Stagnant Technology: Code has not been updated for a long time, outdated technical architecture
• Inactive Community: No interaction in Telegram groups, Twitter, and other social platforms
• Lack of Substance: Relying on hype with no actual application scenarios
• High Risk of Delisting: Exchanges may announce delisting at any time, causing tokens to drop to zero
✨ Final Outcome
• Price continues to decline, ultimately losing liquidity, leaving no opportunity to cut losses and exit
• Project teams abscond with funds, and tokens become completely worthless 'souvenirs'
2. Unlimited Minting Coins — The Project Team's 'ATM'
✅ Main Characteristics
• Unlimited Printing: Tokens can be minted without limit, directly crashing the market once unlocked
• Cashing Out Harvest: Early investors sell off in large quantities, forcing retail investors to take over
• Severe Inflation: The longer you hold, the more severe the depreciation, with inflation rates far exceeding fiat currency
✨ Final Outcome
• Coin prices remain in a downward channel for a long time, with brief rebounds serving as exit opportunities
• The principal invested by retail investors ultimately turns into profits for the whales
Real Cases
• OMG: Dropped from $20 to $0.2, a decline of 99%
• STRAT: Dropped from $32 to nearly zero
• FIL: Experienced a crash immediately upon unlocking, with retail investors repeatedly harvested
Investment Advice
• ❌ Don't be greedy for low prices: Low prices do not equal opportunity; they may be a bottomless trap
• ❌ Don't believe in sentiment: Obsolete projects have almost no chance of revival, 99% will continue to decline
• ❌ Stay away from inflationary coins: Holding these types of tokens essentially provides the project team with a cash withdrawal password
