👩🔬 This cycle IS different (2/3)
Now we know that we should observe alts separately. But almost all alts dumped together on April 13th caused tons of liquidations, especially fresh ones. Why did this happen?
Of course alts are not completely independent: #BTC and #ETH still affect them, so in case of a big move alts may move together. The question is why new shiny coins dumped much more than old dinosaurs?
It happened because of ridiculously high market caps of new coins. They enter markets with few coins unlocked, but billions of market cap. This cause constant selling pressure all the time except the first few weeks/months.
Here is an example: this May $1.1 billion #AEVO will be unlocked for the team and big investors: this is 750% of the current circulating supply! This is an insane selling pressure! It's easy to track more than $4 billion in cliff unlocks this month and this is only 130 token data! The real number is much much higher, probably around $500mil of unlocks per day. For reference, #BTC inflation is around $35mil per day.
2️⃣ Second new rule: it's vital to check market caps and tokenomics. Most of new coins are stillborn and they will dump forever.
