$WLD The Era Of All Crypto Assets Moving Up In Unison Is Over.
“We are all gonna make it (WAGMI)” is dead.
This is a natural step in the evolution of crypto space.
If you look at the first few pages of Coin Market Cap (CMC), only 43 tokens of the top 300 have outperformed BTC in the year 2024 YTD.
Then why does any other category not stand out?
Let’s dive in.
There is a massive overproduction of tokens. 600,000+ tokens already launched in 2024 and this was just as of April. And there’s over 5500+ tokens being launched per day.
The valuations of altcoins are getting extremely inflated at the centralised exchange listing time. Let’s ignore the tech behind the project and look at some key points:
🔸The founders get zero cost basis.
🔸VC’s and angel investors get to buy a large percentage of the token very cheap.
🔸Then centralised exchanges, market makers, Twitter (X) KOL, Influencers and other prominent people, they either get token supply or cash in order to talk about the token.
And ultimately retail is the exit liquidity for this and at the end of the day they get dumped on.
One thing you should notice is that in Tier-1 VC backed infrastructure projects, all the FDV that grows it all happens in the shadows, it happens in the private markets. By the time something gets listed, it gets a $5B or $10B valuation from this mega event but retail doesn’t get any benefit from them at all.
So, they deliberately list altcoins at extremely high initial valuations, so even after an initial -90% which is inevitable, the seed investors are up 100-200X and retail mistakenly thinks they’re getting a discounted bargain.
Next time you see anyone posting “This person made a 100X from the XYZ coin, it’s definitely not retail.
Hence focus on market cap, focus on demand+utility. The top alts are still undervalued.
