Top trader Eugene Ng Ah Sio's views are insightful in the cryptocurrency market. He emphasized that unlocking events for valuable protocols should be seen as bullish opportunities rather than negative factors. This view is based on several core logics:
Belief and hoarding: He mentioned that for protocols that are truly optimistic or liked, the unlocking of their tokens often only provides more opportunities for investors with firm beliefs to hoard tokens. These investors believe in the long-term value of the protocol, so they will use the unlocking events to accumulate tokens instead of selling them. This behavior pattern helps to support the price of tokens and may even drive them up.
Value judgment: Eugene pointed out that unlocking events will only become a problem when the tokens are considered worthless. This reflects the subjective judgment of market participants on the value of tokens. In the cryptocurrency market, many projects have gradually lost their appeal due to various reasons (such as technical defects, market saturation, poor management, etc.), resulting in a sharp drop in token prices. However, for those projects with real value and innovation, unlocking events usually do not have a long-term negative impact on them.
Market Adjustment and Valuation Rationalization: Eugene believes that the 80-90% price drop of many altcoins since their launch is actually part of the market adjustment and the process of valuation rationalization. During the bubble period of the cryptocurrency market, many projects were overpriced due to speculation. As the market gradually returns to rationality, the true value of these projects is revealed and the prices are adjusted to more reasonable levels.
Investor mentality: This view also reflects the mentality that investors should maintain when facing market fluctuations. For investors who are optimistic about a project in the long term, short-term price fluctuations should not be the main factor affecting their investment decisions. Instead, they should focus on the long-term development potential and value creation ability of the project, and increase or reduce their holdings at the right time.
Eugene Ng Ah Sio's views provide investors in the cryptocurrency market with a new perspective and way of thinking. He emphasized the importance of firm belief in valuable protocols and long-term investment, and reminded investors to remain calm and rational when facing market fluctuations.
