As crypto practitioners and retail investors, we have to understand the standard route of the leeks in the cryptocurrency circle.
Saw the project but didn’t participate/didn’t know the project: In the cryptocurrency world, there are many emerging projects, but not everyone knows all of them. Therefore, if investors don’t do enough research on a project, they may miss a potential investment opportunity.
Witnessing a project surge: When a project performs strongly in the market, investors may see its price continue to rise. This may attract more investors to the market and further push up the price.
KOLs started to show off their orders and made hundreds of times more money: In the cryptocurrency circle, they may share their earnings on social media in order to attract others to join.
When investors see that prices are rising, they may panic and miss the opportunity to enter the market, so they choose to enter the market at a high price. However, once the price starts to pull back, they may get into trouble and be trapped at a high price.
Cutting a loss: If investors begin to think that prices will not recover, they may choose to cut their losses by cutting their losses.
The market is fomo again: Due to human greed and fear, when the market shows an upward trend again, investors may feel FOMO and want to enter the market again to make profits.
Breaking down and cursing the project party: When prices fall or they are trapped, investors may lose patience and emotionally vent their anger at the project party, whether it is the project party or other investors.
KOLs continue to post their orders: Despite the price drop, certain key opinion leaders may continue to share their gains on social media to maintain market confidence.
Take out all the savings from working for x years and go all in: When investors are in trouble, they may choose to use all their funds to buy the project in the hope of recovering their losses.
A 20% drop: However, this behavior could also result in greater losses.
Some KOLs who are trapped start to cheer, and you like them. Some KOLs sell their shares while promoting the project: When the price falls, some key opinion leaders may choose to continue to support the project on social media in the hope of regaining market confidence. However, this may also be because they are selling part of their positions.
Cut in half: When the price of a project drops by more than 50%, many investors may choose to leave and believe that the project has completely failed.
You continue to hold: However, some investors may hold on to the project in the hope that the price will rebound.
Loss of liquidity to zero: Eventually, if a project is no longer popular in the market, it loses liquidity and cannot sell their positions, resulting in serious losses.
