The market has fallen badly in the past few days, and the current fear and greed index is only 40. In fact, you should overcome human nature and conquer fear and greed. When everyone is afraid, you should muster up the courage to buy at the bottom. Currently, BTC has fallen to as low as 5.8, and has rebounded to 6.1. It has not stabilized yet, so the possibility of further decline cannot be ruled out. Today we will look at the reasons for this decline and which value coins have reached the value trough.
First of all, the first reason
On June 24, the trustee of Mt.Gox announced that the repayment of BTC and BCH will begin in July this year. It is reported that Mt.Gox has a total of 127,000 creditors (Japanese users account for less than 1%) and needs to repay 142,000 BTC (currently worth about US$8.58 billion) and 143,000 BCH (worth about US$53.311 million) to creditors.
Affected by this, the crypto market staged a "dive", and Bitcoin once fell below the $60,000 mark.
But on June 25th, things seemed to have turned around again. Mentougou actually wanted to compensate according to the value of Bitcoin in 2014, BTC 483 USD! Instead of the current value or the number of lost Bitcoins! Since it has been almost 10 years since 2014, Bitcoin has increased by 100-200 times, so it may only take a few thousand Bitcoins to be paid. Then these retail investors who lost Bitcoin will be miserable, because after so many years, there has been no increase.
The second reason - new VC projects suck blood
A year ago, USDT’s circulating market value was $83.2 billion, and now it is $112.7 billion, an increase of $29.5 billion. USDC rose from $28.4 billion to $32.6 billion, an increase of $4.2 billion. The total increase of the two in one year is $33.7 billion.
The following are ten VC tokens that have been launched in the past six months, with a total market value of 5.47 billion (all units below are in US dollars): PYTH (1.1 billion), ENA (950 million), STRK (900 million), ZRO (670 million), ZK (600 million), ETHFI (360 million), DYM (270 million), ALT (270 million), ATH (250 million), and EZ (100 million).
In the second half of 2023, giant tokens such as TIA (1.17 billion) and SEI (1.05 billion) will exist. And this circulating market value is calculated based on a drop of at least 20%-30% in recent weeks.
Therefore, at least 50% of the incremental funds are absorbed by dozens of "VC tokens".
In addition to the unlocking of VC-invested projects, Meme coins, on-chain local dogs, Ponzi schemes, and capital markets will all be diverted. After the ETF is approved, the traditional financial market will also divert funds that flow directly to the cryptocurrency circle.”
These projects are all listed on top exchanges, such as Binance and OKEx. Relying on the huge user base, the exchanges provide leverage functions that are far higher than those on the chain, with leverage up to dozens of times, providing sufficient counterparty liquidity for "shipping". The on-chain capacity is far less than that of the centralized trading market after leverage. In the end, these retail investors on the exchanges bear all the consequences.
We have analyzed before that the ones that have performed well in the recent round are MEME and some ownerless currencies. Why? It is because retail investors do not want to take over VC’s plates at present, so retail investors take over some ownerless currencies. We have made some introductions to ownerless currencies before, and you can check out the previous content.
Even though the market is falling sharply, I see opportunities. In the previous article, I talked about several valuable currencies. As soon as I finished talking about them, they rebounded by 20% the next day, especially the three major AI currencies, FET, AGIX, and OCEAN, because these three currencies will be merged on July 1st.
Today we continue to sort out 8 valuable projects that are in value troughs.
11. Beam, the original Merit Circle blockchain gaming platform. We have previously highlighted this platform, which is also a very promising platform with a very low market value. The current highest point of Beam is US$0.044 and the current price is US$0.017, a drop of more than 72%.
12.WLD, Ultraman's project, is the founder of OPENAI. At present, I think WLD is just a MEMEcoin, because letting AI work for humans and provide subsistence allowances to people all over the world is a science fiction, and the slogan is more than the actual work. The biggest highlight of this project is the awesome founder. The highest price before this wave was 11 US dollars, and now it is 2.8 US dollars. You should know that after it went online, the lowest price was about 1 US dollar, so the current price of 2 is actually quite cost-effective.
13.OP, as one of the two heroes of OP L2, although I am more optimistic about ARB from a technical perspective, because ARB's ecology, technical aspects and TVL are better than OP, but this round of performance is indeed better than ARB. The current highest point of OP is 4.7, and the current point is 1.7, a drop of 65%, and the lowest point of this round is only 0.8, which is definitely a high cost-effective position.
14. FIL. We have mentioned before that FIL is the leader in the storage field. From a technical perspective, the team is very optimistic about FIL. But why we did not recommend buying it before? Because it has fallen too much from 200, and the highest point of this wave was 11. It is currently 4 US dollars. 4 US dollars is actually very good, because if you don’t buy FIL at 4 US dollars in this wave, you may have to spend 20 times the price to buy it in the next bull market.
15. TAO, the leading project in machine learning in AI, has performed extremely well this round. When we were talking about it, it was only 50 US dollars. It peaked at more than 700 US dollars and has now fallen back to 280 US dollars, a drop of more than 60%. Although machine learning may not be AI in the strict sense, I think it is very down-to-earth. At present, most blockchain AI is still floating in the air.
16. Shiba & DOGE, the first and second MEME dog series projects, because I heard that these two products may be listed on ETF, so there is a possibility of a surge. The current highest point of DOG is 0.2, and the current point is 0.12. The highest point of Shiba is 0.000037, and the current point is 0.000018, and the decline is almost 50%.
17. FRX, a fractional algorithm stablecoin, is one of the 100x projects we talked about before. Stablecoins are always a battleground in every bull market. Will FRAX be the one in this market? The highest peak of FRX was $12, and it is currently $3.3, a drop of more than 70%.
18. YGG, the leader of blockchain game unions, is the one that we mentioned before, and it has increased by more than 10 times. Last year, we explained that it has increased by more than 10 times. This wave has also seen YGG in many blockchain game projects. The highest point of this wave was 1.7 US dollars, and the current price is 0.58 US dollars, with a drop of more than 60%, which is an absolute super cost-effective position.
Okay, today I will recommend 8 of them. After looking at the top 200 projects, I have listed the most valuable ones. There are not many that are still in the value trough. So please read and cherish them.
