The digital currency $HMSTR , known as the “hamster coin,” saw its value decline sharply just three days after its launch, making it one of the fastest losing cryptocurrencies in such a short period.
Background:
$HMSTR was launched as a new project in the world of cryptocurrencies, amidst great hype and expectations of a change in the market. The currency relied on intensive marketing campaigns on social media, and specifically targeted new investors looking for quick opportunities to make profits.
Initially, the market responded positively, with HMSTER seeing a rapid rise in its value during the first hours of trading. This sudden surge encouraged many investors to buy the coin, hoping that it would achieve significant gains, as some other coins have done in the past periods. However, this surge did not last for long.
Main causes of losses:
1. Excessive speculation: As interest in volatile cryptocurrencies increased, many investors engaged in excessive buying based on unrealistic expectations. After its initial rise, many investors began selling en masse to make quick profits, which led to a sharp decline in the price of the coin.
2. Lack of Trust: Over time, reports emerged that the project did not have solid fundamentals behind it. Some began to question the actual ability of the coin’s development team to deliver on the big promises they made, leading to growing concern among investors and a decline in trust in HMSTER.
3. Lack of Strong Support: Despite the initial media hype, HMSTER did not receive strong support from institutions or major crypto investors, leaving it vulnerable to extreme volatility. The lack of strategic partnerships or real-world applications for the coin also raised doubts about its long-term sustainability.
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