Blockchain passwords you don't know?

(Strategy Zhuye)

Let's analyze in detail why most altcoins will go to zero.

First, the substitutability of altcoins is too strong.

In addition to Bitcoin, almost all altcoins face the risk of being replaced. As a pioneer of public chains, Ethereum attracted a large number of project ecosystems in the early days. However, with the passage of time, many high-quality public chains such as SOL and TON have emerged, which have even surpassed Ethereum in terms of performance, memory, speed, etc., posing a serious threat to Ethereum's status. This means that any altcoin may be replaced by a better project.

Second, the threshold of blockchain is too low, leading to the proliferation of projects.

On Taobao, you can easily find merchants who write white papers and post projects on behalf of others, with a cost of only a few thousand yuan. If you want to open a market, you can even add a pool with only 10U. This low threshold has led to the proliferation of blockchain projects. In just a few years, the number of projects included has reached more than 30,000, and it is still increasing. This low-cost, low-threshold environment is bound to lead to market diversion, forming a siphon effect on some inactive copycat projects, making their market value lower and lower, and eventually infinitely close to zero.

Third, there are a large number of locked-in orders above the copycat projects that have experienced a bull market.

It costs money to pull the market, and this cost is either borne by retail investors or paid by the project party themselves. However, it is unrealistic to expect the project party to pay for the market. They are more inclined to mobilize retail investors' emotions by creating hot spots and publishing news in order to ship. Therefore, many projects with a drop of more than 90% are difficult to reach new highs.

Fourth, the elimination mechanism of the exchange is also an important reason for the return of copycat coins to zero.

For those zombie coins that have no trading volume for a long time, the exchange will forcibly remove them. Projects that do not generate benefits for the exchange will be cleared. If you have such a currency that has no trading volume for a long time, sell it as soon as possible. Maybe the next one to be removed from the shelves is your project.

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