Today, let's discuss why today's altcoins cannot withstand any wind and waves! First, let’s talk about the definition of altcoins:
Altcoin refers to all cryptocurrencies other than Bitcoin.
After Bitcoin, various cryptocurrencies began to emerge, many of which modified or innovated based on Bitcoin, while others were born to meet different needs or specific purposes. Since these cryptocurrencies are usually born under the influence of Bitcoin, they are sometimes humorously referred to as 'altcoins.'
"Altcoin" sometimes carries a pejorative connotation, suggesting that these coins are "imitations" or "copies." However, some altcoins have innovated in technology, functionality, use cases, and achieved significant market positions. For example:
Ethereum: Although it initially appeared as a 'fork' of Bitcoin, it has become the second-largest cryptocurrency globally by introducing innovations like smart contracts and decentralized applications (dApps), which have also driven the development of the entire blockchain ecosystem.
XRP: XRP is a cryptocurrency associated with traditional financial systems, aiming to improve cross-border payment systems through blockchain technology, and has strong practical application value.
Litecoin: Litecoin is one of the earliest Bitcoin 'forks' that adjusts Bitcoin's algorithm and transaction confirmation time to achieve faster transaction speeds, aiming to become a more lightweight and efficient cryptocurrency.
Dogecoin: Originally launched as a joke and meme, Dogecoin has gradually developed into one of the world's most recognized cryptocurrencies, thanks to strong community support and an increasing range of applications.
In the past, altcoins still had some technological and application innovations:
Technological Innovation: These altcoins attract users by offering different technical features compared to Bitcoin, such as faster transaction speeds, smart contracts, and privacy protection.
Application Innovation: These altcoins focus on applications in specific industries or scenarios, such as cross-border payments, decentralized finance (DeFi), supply chain management, etc.
But today's altcoins are more about: PPT innovation! Simply put, this means writing extravagant visions and then crazily offloading afterwards! As more coins are listed and quality declines, altcoins have also become fragile!
Why do altcoins not follow Bitcoin when it rises, but drop harder than anyone else when it falls!
The fundamental reason for the severe drop of altcoins is:
When Bitcoin rises, more people buy altcoins, and market makers sell like crazy, continuously offloading! So looking back, many altcoins haven't risen as much as Bitcoin! Market makers have too many chips in hand; they keep selling, so how can the coin price rise!
It's the same when the market declines! Market makers only sell coins and don't support prices; if you try to buy the dip, they keep selling!! In the past, it wasn't so easy to list coins in the crypto market; market makers cared about the distribution and concentration of chips and emphasized market control, and the requirements of exchanges were stricter!
In today's crypto market, Binance alone has listed USUAL PENGU CAT VANA ME MOVE ORCA ACX and so on in just one month!!!
It's too easy to list coins; the market makers just need to keep selling. If a project fails, they simply create a new PPT to transition to the next one! With USDT and resources, listing coins is as simple as drinking water! Exchanges also do nothing! If they are forced to maintain prices, they might have to take a firmer stance, and some project teams would have to support it!!! Altcoins wouldn't drop so severely!
Everything is the result of indulgence and neglect!
This is also why the 'scumbag theory' has been emphasized this year! Remember the scumbag theory; regardless of whether the market is good or bad, just implement the scumbag thoroughly in the crypto market!
The crypto market is both a stage for the game of human nature and an arena for the collision of beliefs and strategies. Every fluctuation is a selection and reshaping process, eliminating blind followers and leaving behind those who truly understand market rules.
If you've read this far, remember to like and share with your crypto friends!
