Periodically, one or two new cryptocurrencies emerge on the #Lunchpool platform #Binanceaward , where rewards are distributed to those who hold $BUSD and $FDUSD for a limited period. This process lasts for a few days, during which the price of the newly launched token starts to rise. Many investors rush to buy, believing they will achieve profits of five fold or more.
Some believe that these tokens represent a "once-in-a-lifetime" opportunity, thinking that a simple $100 investment could turn into a million dollars. However, the reality is quite different. All tokens launched in 2024 have experienced significant declines in value, with their prices dropping to less than one-fifth of their original value. Examples of such tokens include:
Additionally, there’s a risk that these tokens could be delisted from the platform, as happened with well-known tokens like $EPX (delisted) and $JASMY (under monitoring), some of which have already been removed. Holding such tokens for long periods without trading them can expose investors to significant risks.
Major Investors’ Strategy
New tokens are often launched at their highest price, controlled by major investors. Small investors rush to buy, hoping for quick profits, but the major investors start selling once they recover their money, causing the price to drop rapidly and unexpectedly.
For this reason, when a new token is launched, avoid rushing to buy. That large percentage increase you see—sometimes as high as 1000%—is often an illusion. You won’t be able to buy the token at its lowest price, as placing trade orders isn’t allowed until the token is officially launched.
My Personal Experience
Personally, I often receive rewards from staking BNB, but the amounts are usually less than $100. I sell these rewards immediately, which I consider the safest part of the process. On the other hand, buying and selling after a launch is much riskier. It’s usually best to wait until the price drops to its lowest point before considering a purchase.
Conclusion
Invest cautiously. The cryptocurrency market is full of risks, and trading new tokens may involve more illusions than real opportunities.
