Retail investors can lose money when a coin is listed on an exchange due to several factors:
1. Pump and Dump: Initial hype drives prices up, but early investors sell off, causing the price to crash.
2. Lack of Information: Retail investors often buy based on hype without fully understanding the project, leading to losses when reality sets in.
3. Volatility: New listings experience extreme price swings, making it easy to buy at a high price and watch it drop.
4. FOMO: Fear of missing out can cause emotional buying at peak prices, resulting in losses as the market corrects.
5. Low Liquidity: Low trading volume can lead to price manipulation or difficulty selling without significant loss.
Investors should approach new listings with caution, conduct research, and avoid chasing quick profits.