During this period, many people commented on the listing of new coins on exchanges. After the listing, they fell sharply, and some even halved. This made many people complain, and even thought that the listing of new coins was cutting leeks. In fact, this is also normal in the traditional financial market, but there is a big difference.
There is no such thing as washing any exchange here, but if you think this is cutting leeks, then it is really not suitable for trading.
I have mentioned many times before that when a new coin is listed, try not to rush the first wave, unless you can get a very low chip within a few seconds of the opening, and then pull up and leave the market. But this is something most people can't do. So often many retail investors buy in at high levels. The most classic example is that OK and Binance listed AVEO at the same time some time ago. Because of the different liquidity of both parties, OK rushed to $13.5, while Binance was $3.5, and many people were trapped. In particular, many people in OK were trapped at more than $10. Many newcomers believed that the new coin would definitely rise, so they blindly bought at the current price and were directly pushed to the high point by price fluctuations. It was a bit helpless.
If a new coin is circulated in the primary market and runs for a period of time, and is listed on a large exchange, it is basically a traditional enterprise that has completed its listing, and different exchanges are basically regarded as the difference between listing on the main board, small and medium-sized board, or GEM. Once a company is listed, it has basically completed a stage of established goals. The risk market is speculating on expectations or valuations. Everyone is speculating on the future of the company and the future of the token. Therefore, once this future is completed, the actual situation will be tested by the market. Often, the risk market is over-valuing and over-expecting for companies or targets. Therefore, once the listing is successful, there will be a wave of pull-ups driven by emotions, and then it will be sold off after the emotions settle. This is also normal.
If a new coin is not directly issued and circulated in the primary market, but chooses to be listed directly, that is, listed, then after the new coin is listed, the short-term outbreak will be relatively high, but by the same token, after the surge, the short selling pressure faced and the decline in market sentiment will cause the coin price to fall, and then consolidate and rise again. Therefore, the risk of rushing the new coin as soon as it goes online is not low. As for whether the new coin will continue to rise and not fall, it depends on market factors and market makers.
The big premise is that considering market factors and the digestion of market bubbles, the project party itself must also consider the right time.
The launch of a new coin is a process in which the bubble increases in the short term and then falls back. In traditional finance, once a company goes public, due to regulatory restrictions and the convenience of subsequent corporate financing, many companies choose to maintain their market value, and the short-term rise and fall is also limited.
However, in the crypto market, there is a lack of effective regulatory measures, and the subsequent financing situation is not considered, and the trading situation in the secondary market is simply considered. This leads to the market maintaining the market value. The short-term profit and loss ratio must be calculated.
In the case of a sluggish environment, market sentiment is low, and traders are less willing to buy, resulting in low attention to the launch of new coins. Under this premise, once a new coin is launched and there is a bubble, if it goes against the trend to protect the market at this time, when the buying power of retail investors is weak, this may lead to the project party or the market maker taking over the retail investors, and this takes into account the capital capacity and subsequent actions of the project party. If there is money and confidence in follow-up, it will help digest the selling pressure and stabilize the currency price. When the market is given confidence, retail investors will follow suit and buy.
However, there are also many concerns, which leads to the project party or the market not daring to protect the market or take over the market, and can only let the bubble in the market rise and burst, which will lead to a large decline or the so-called halving.
Of course, there are many factors, so many times we have to consider environmental factors and the popularity of individual projects to make judgments. Once you lack knowledge of the market environment and the project, it is really not recommended to rush in and buy the new currency at the first time, otherwise the short-term penalty or loss will only leave you with complaints and abuse.
