Another reason for the crash has finally been found.
In addition to what was mentioned in the last post:
market fluctuations, deleveraging, gathering chips, etc., another important reason has surfaced.
What I want to talk about today is not the external issues of Google's computing power, but the main reasons within the cryptocurrency world itself.
Looking back at our cryptocurrency history of more than a decade, almost every time there is a significant bull market, many new "coins" appear, some riding the hype, some playing with concepts. Many also cash out after a quick profit.
How many of the once-popular coins in 2021 are still around?
It’s said that people prefer new coins over old ones, mainly because new projects are easier to pump, experience violent ups and downs, have free pricing, and offer better profit-taking opportunities. But look at Bitcoin, Dogecoin, and Ethereum—none of them haven't gone through multiple bull and bear cycles. They have steadily increased in value.
This time, a large part of the reason for the decline is that market makers and platform merchants have come together with various new coins, launching at just 5 USD. How can XRP and Doge holders feel about this?
I do not recommend any coins, but the platform where Move and Me are listed has seen over 1.5 billion USDT traded in 24 hours.
The total capital in the cryptocurrency market is limited. Recently, Meitu Inc. was reported to have sold off BTC to exit the market. Limited funds need to be allocated to an unlimited number of coins. Before new coins are launched, market makers, platforms, and KOLs team up to do a strong push, resulting in a blood-sucking increase.
Essentially, it is still influenced by the supply and demand relationship.
Now you understand, right?
Okay, platforms like Coinbase also continually list new coins.
Which one doesn't suck blood?
Now you know what to do.