The New Cryptocurrency Disaster: Why Does It Turn into Zero Overnight?
Before continuing the topic with you, there is a strong currency that will have a near and strong future, which is the $SOL currency
There are several reasons why new digital currencies lose their value quickly and become priceless, the most prominent of which are:
1. Lack of a real project or basic value:
Many new digital currencies are launched without a real project supporting them or a problem they seek to solve. They are created only with the aim of making quick profits for the founders.
2. Reliance on speculation:
Some new currencies rise in value quickly as a result of speculation and temporary obsession with them. When this obsession goes away, prices collapse.
3. Market inflation:
Thousands of digital currencies are launched annually, making competition fierce and making it difficult for new currencies to excel or survive.
4. Lack of liquidity and investor support:
If there is no strong demand for the currency or if developers fail to attract major investors, the currency becomes worthless.
5. Scams:
There are many fraudulent projects that are created to attract investors’ money quickly (known as “rug pull”), and then the founders disappear with the investors’ money.
6. Lack of regulatory and legal compliance:
Cryptocurrencies that do not comply with local or international laws may face legal problems that lead to their collapse.
