Why is the market flowing back to a downturn!

Now it is difficult for exchanges to hope that retail investors will continue to participate in the secondary market, because they have been cut off many times, who dares to rush in without thinking? The result is that the project parties and market makers are playing by themselves. So what caused the current situation?

Market saturation and project flooding

With more and more projects emerging, market competition has become extremely fierce. The quality of projects varies, and many projects cannot provide enough innovation and practical applications, causing retail investors to lose confidence in new projects.

Retail investor confidence is frustrated

Due to being "cut off" many times, retail investors have become more cautious and no longer easily participate in the investment of new projects. Even projects listed on top and second-tier exchanges are difficult to attract enough retail investors to participate.

Financial pressure on project parties

Project parties need to pay high listing fees and participate in some whitelist or launchpool activities, which puts huge financial pressure on project parties. After going online, retail investors often quickly sell whitelist and mining tokens, exacerbating price fluctuations and declines.

Market manipulation and the role of market makers

Due to the caution and withdrawal of retail investors, most of the actual transactions in the market are done by project parties and market makers. Market makers try to maintain or increase the market price of projects through market manipulation, but such internal operations are difficult to form long-term market confidence.

Regulatory and policy uncertainty

The unclear regulatory policies on cryptocurrencies around the world have made the market environment more unstable. Investors are concerned about policy uncertainty, which further reduces market participation.

Insufficient community and ecological construction

Many projects lack real community and ecosystem construction, resulting in a lack of long-term appeal and user base. Retail investors prefer to invest in projects with practical applications and strong community support rather than short-term speculation.

These factors work together to lead to the current dilemma of project parties and retail investors in the market. Retail investors' confidence and participation have declined, and project parties are facing financial pressure and market operation difficulties, making the overall market environment not optimistic.

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