Whenever a new coin is listed on Binance, the market tends to go wild, with prices often surging by 3000% or more. However, history shows a recurring patternāafter the initial excitement, these coins typically experience sharp crashes.
š” The Harsh Reality:
1ļøā£ The Pump: Newly listed coins, like $VELODROME today, see massive price gains driven by FOMO and speculative buying.
2ļøā£ The Dump: Once the hype dies down, these coins often experience significant declines, erasing early profits and causing losses for late buyers.
š„ What Can You Do?
š Donāt Chase the Hype: Avoid buying impulsively during the frenzy. Unsustainable pumps are a common trend.
š Set Tight Stop-Losses: If you choose to trade, protect your capital by setting stop-loss limits.
š Think Long-Term: Don't fall for the belief that the hype will last forever. Always analyze a coin's fundamentals before making d
ecisions.