In the cryptocurrency world, there are two words that often appear in discussions among investors: FOMO (Fear of Missing Out) and the “Leek Culture”. These two phenomena were most evident in the surge in the cryptocurrency market in 2017, and have become the source of pain for many investors. Today, let’s review that crazy history and see how to avoid becoming the next “leek”! 🌱
2017: A Crazy Year for Crypto 📈
In 2017, the cryptocurrency market experienced an unprecedented surge. The price of Bitcoin soared from about $1,000 at the beginning of the year to nearly $20,000 in December, an increase of more than 2,000%. Not only Bitcoin, but other cryptocurrencies such as Ethereum, Litecoin, and Ripple also experienced similar leaps. The unprecedentedly intense market heat attracted a large number of new investors to join this seemingly "guaranteed profit" market.
FOMO: The fear of missing out 😱
As the price of Bitcoin and other currencies continues to rise, FOMO sentiment is spreading rapidly. Investors began to worry: if they miss this opportunity, they will never be able to catch up with the "express train" of wealth! This sentiment is increasingly evident on social media and news platforms, where everyone is talking about the skyrocketing price of cryptocurrencies, as if not investing means missing out on an opportunity to make money.
1. Media hype:
Social platforms and news channels report the surge in Bitcoin every day, attracting a large number of ordinary investors who have never been exposed to cryptocurrencies. They see others making a lot of money and are eager to get a piece of the pie. As a result, many people do not do enough homework and just blindly follow the trend because they see everyone making money.
2. Irresistible temptation of skyrocketing prices:
The crazy rise in Bitcoin prices has made many people feel that as long as they enter the market, they can earn huge returns in a short period of time. However, this short-term profiteering often leads to the neglect of market risks, and many investors are not aware of the volatility of the cryptocurrency market.
3. Investors’ eagerness for quick success:
Novice investors often lack sufficient experience and risk management awareness, and are eager to make huge profits in the short term, and often end up becoming the market's "buyers". This has intensified the FOMO sentiment, and many people have entered the market on a blind impulse, ignoring rational and well-thought-out investment strategies.
“Leek” culture: the tragedy of investors 🥲
The term "leek" refers to those blindly following, inexperienced investors who are always the last to enter the market but the first to be cut. In 2017, the "bull market" of cryptocurrency was a classic portrayal of the "leek" culture.
1. Buying at a high price and becoming a “buyer”:
Many people, out of FOMO, saw the crazy rise in the price of coins, so they "bottom-fished" and entered the market when the price peaked. However, due to the lack of analysis and judgment ability, they blindly entered the market when the market was about to pull back, and eventually became "buyers". When the market bubble burst, many investors had to bear huge losses and were "cut off".
2. Panic after the bubble burst:
In December 2017, the price of Bitcoin experienced a sharp correction, falling from nearly $20,000 to less than $10,000. Many investors who bought at high prices began to sell in panic, and eventually became "leeks" because they could not withstand the drastic market fluctuations. These investors not only missed the rebound opportunity, but also lost a lot of wealth in losses.
The consequences of FOMO and the “leek” culture: 💔
1. Market bubble burst:
Driven by FOMO sentiment, the price of the cryptocurrency market quickly deviated from its actual value, forming a huge bubble. After the bubble burst, many investors suffered irreparable financial losses, and the market also experienced severe shocks.
2. Regulatory crisis and market trust:
After the bull market in 2017, the market's ups and downs brought about a huge crisis of trust. Governments around the world have stepped up their supervision of the cryptocurrency market, and China, South Korea, Hong Kong and other regions have introduced restrictive policies on cryptocurrency transactions and ICOs to curb market speculation.
Typical investor story: from "leek" to vigilance 🚶♂️
1. Painful experience of retail investors:
An American investor shared his experience: he entered the market when Bitcoin broke through $15,000, but he did not expect the price to plummet quickly, and he had to sell at a loss, suffering heavy losses. He recalled: "I was overwhelmed by market sentiment, did not think rationally, and was just worried about missing opportunities, and ended up becoming a 'leek'."
2. The “buyers” of emerging currencies:
In addition to Bitcoin, many emerging currencies also rose sharply in 2017. For example, Ripple (XRP) attracted a large number of investors. However, when the market fell back, these investors also became "buyers". Many people chased the rise due to FOMO, and suffered painful losses when the bubble burst.
Summary: Beware of FOMO and avoid becoming a “leek” 🌿
The ups and downs of the cryptocurrency bull market in 2017 have taught all investors a profound lesson: rationality and patience are crucial when investing in this high-risk market. FOMO emotions may cause you to miss opportunities, or they may cause you to buy at high points and become "leeks". Therefore, investors need to be vigilant at all times, avoid blindly following the trend, and conduct in-depth market analysis, which is the key to avoiding losses.
This lesson applies not only to the cryptocurrency market, but also to investments in any field. We need to face it with a calm mind and not let FOMO become the dominant force in our investment decisions. 🔍💡
If you have ever missed out on opportunities due to FOMO, or become a “leek” in market fluctuations, share your story in the comments section so that we can learn together!
