Many friends in the currency circle often ask Sanjin how to plan ahead for those altcoins that may soar 100 times? They wonder which project has the opportunity to become the next 100-fold coin, and whether there is still a chance for a 100-fold coin in the current bull market. Sanjin gives everyone a unified answer:
First, we need to understand why there are no altcoins that have soared dozens of times in this round of bull market like in the past. This is mainly attributed to changes in market environment, capital allocation and dealer strategy.
Market environment: The market value of new coins when they are launched is generally high, often billions or even tens of billions of US dollars. This means that altcoins face huge market value pressure from the beginning, and it is difficult to achieve a 100-fold growth through a smaller market value base as in the past.
Capital allocation: With the increase in dealers and institutions, their financial strength is getting stronger and their operating methods are more complicated. They divert market funds through high FDV (fully diluted valuation) and a large number of new projects, which makes it difficult for retail investors to judge the real trend of the market and to select projects with real potential from many new coins.
At the same time, the scale of funds required for the bull market of altcoins has increased significantly, but the funds in the market are limited. These funds have flowed more to mainstream currencies such as BTC and ETH, rather than being dispersed into numerous altcoins. Therefore, the overall performance of altcoins is relatively weak.
Banker strategy: In the current market, bankers have many clever strategies to "hit" retail investors. They use the knowledge limitations and greed of retail investors to induce retail investors to trade through various means to gain benefits. This makes retail investors face greater risks when participating in altcoin transactions.
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