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COINS SEASON X30

The question is, when it happens, are you in it and how much of it can you eat?

Reasons why COINS XX SEASON IS REQUIRED:

⭐️First reason: MONEY.

Opening the W and M charts of any coin that has gone through a season, we all see one thing in common: they all reached a very high peak in 2021 and have been drifting for the past 3 years.

If we ignore the waves of childhood x3 x5, it's clear that they just float and drift. Every project is the same.

So for the past 3 years, where have the projects got the money to maintain? Where is the money to pay programmers? Their money is closed xx times right at the peak of 2021.

The peak of 2021 compared to the previous bottom, all x several dozen to x200 300 times. They took advantage of the closing to have money to maintain the project in the next 3 years of downtrend.

In a 4-year cycle, altcoins only really shine once, in the last 5-6 months of the cycle. The remaining 3 and a half years were all drifting or insignificant rebound waves. So during those 5-6 shining months, they were forced to pump heavily to maximize profit, to have funds to maintain operations during those 3.5 years of floating.

⭐️Second reason: IT'S ALSO MONEY.

Each project has many rounds of capital calling A B C D….

Investors in these project rounds will receive tokens but will be locked and unlocked gradually over months and over many years.

Sometimes the peak of the cycle is 2021, but many projects will not be unlocked until 2023.

So in 2021, they have to pump the peak very high, so that from 2021 - 2023, investors in seed rounds, receive coins monthly, they sell at all times for a profit. Even though the current price has been divided 20 times from the peak, they still receive coins and sell them for a profit.

Therefore, pushing xx times at the peak of the cycle is a MANDATORY to ensure the rights of seed round investors. (After investing, it locked the coins for a few years. When it was time to receive the coins, it was divided into 4 and 5 tk. The next time it called for capital, it invested).

⭐️ This year's problem is high valuation & high FDV. Will there be no coin season?

Agree that this year project valuation is quite high & FDV is also extremely high. Each one is valued at billions of dollars.

But is that $1 billion in valuation all in the pockets of the Dev & project owner? Does it make them lose motivation and let the project drift?

For new projects listed, most of the initial unlocked coins are used for marketing, paying airdrops, paying large exchange listing fees, paying seed investors, developers are also accepted but most are locked.

That 1B dollar valuation, divided into 5 and 7, no one would take it all. Valuation is one thing, liquidity is more important. Now everyone brings it to the floor for immediate benefit, and the project goes to zero immediately.

If anyone is an old chicken and knows about the collapse of LUNA & UST, they will understand. The total capitalization of LUNA & UST at that time was more than 80B USD, but collapsed because of a deficit of only 200M USD. 80B dollars in hand but not enough to make up for the 200M dollar deficit, sounds like a lot of trouble.

The same goes for the FTX collapse, Sam's assets were more than $30B but he didn't have $1B to compensate for Sam's loss, leading to the collapse of an entire empire.

Therefore, high valuation is one thing, high valuation but 90% of coins are locked, Dev has no money in hand. The valuation is high at 1B but divided by 2 twice, it still goes down to 200M 300M. That much money is still fragmented for many different purposes, for many different investors, so how much is left in the hands of the devs. Is the cost enough to maintain the project in the next 3 years of downtrend?

Therefore, the story of pushing xx times in the UP season is a matter of survival for projects.

THIS CYCLE HAS NO COINS SEASON - which sounds a bit exciting. WITHOUT COINS XX SEASON, the next down season most projects will go bankrupt, regardless of whether the project is big or small.

P/s: The article is quite high quality so I should collect it for you to read and refer to.
#TrenddingTopic #HOTRENDS #binance