What is the root cause of the sharp decline in altcoin prices? The key lies in the shortsighted and profit-driven behavior of speculators, who are solely focused on selling off assets for cash, completely disregarding the stability and healthy development of the market.
Currently, the significant drop in the altcoin market is mainly attributed to the poor operations of certain speculators. In the past, due to the difficulty of launching new coins, speculators had to carefully plan their chip deployment and manage their market capitalization when introducing new coins. However, times have changed, and the process of launching new coins has now become extremely simple, especially on large exchanges, which see numerous new coins launched every month, such as USUAL, PENGU, CAT, VANA, etc.
Nowadays, the tactics used by speculators are very simple and crude: after completing the sale of one project, they immediately rush to the next project to seek a new round of fundraising activities. They have ample funds and extensive resources, making it easy for them to launch new coins. However, exchanges lack effective measures in this regard; even if there is a desire for project parties to support the market, most project parties are hesitant to take action due to various concerns. As a result, the irresponsible actions of speculators have led to instability in the altcoin market, making the sharp decline in coin prices an inevitable outcome.
