The Fundamental Reasons for the Plunge of Altcoins
The fundamental reason for the sharp decline in the altcoin market is that the manipulators only care about how to offload their assets, completely ignoring the market's reaction.
Currently, the main reason for the plunge in altcoins is that some manipulators focus on quickly selling the coins they hold, without considering the impact this will have on prices.
In the past, launching new coins was relatively difficult; manipulators needed to carefully consider how to control the distribution of chips and market capitalization. However, the situation today is drastically different—launching new coins has become extraordinarily easy, especially as major exchanges are listing a large number of new coins every month (e.g., USUAL, PENGU, CAT, VANA, etc.).
The current logic of manipulators is very simple: after selling one project, they quickly switch to another project to continue raising funds.
With abundant capital and ample resources, launching new coins has become as easy as drinking water.
Moreover, exchanges have almost no regulation or constraints regarding this; in fact, if they request project teams to stabilize prices, many project teams are too afraid to do so.
It is precisely this irresponsible behavior that has led to extreme instability in the altcoin market and has increased the risk of a sharp decline.