Patience is required as the altcoin market undergoes a reversal
Recently, observing the situation of new listings on Binance, one can indeed sense subtle changes in the market. In the past, for a coin to get listed on Binance, it needed to have a market capitalization of at least 200 million; now? Even breaking 100 million is a rarity. What signal does this convey? The market's water level is declining, and the rules of the game may be quietly changing.
Looking back, most tokens listed on Binance were 'peaking upon launch', followed by a continuous decline. The project parties and VC investors got the biggest slice of the pie, while the secondary market retail investors took over, leading to a price collapse with almost no breathing room. This model ultimately harms the retail investors in the secondary market; it is essentially a 'winner-takes-all' situation — the project parties win, VCs may also win, but secondary market investors are basically the ones being harvested.
But what if we think differently? Suppose the new coins on Binance have a low market cap, say less than 100 million, allowing the secondary market to have room to strategize and discover value. Initially, the price is low, funds gradually enter, quality coins stand out, leading to a spiral increase and creating wealth effect, providing more profit opportunities for the secondary market. In this way, investors in the secondary market can earn, project parties can earn, VCs can earn, and even the overall market liquidity can improve; this is a 'win-win' situation.
What is the core principle of the market? A winner-takes-all business model is doomed to be unsustainable. If the project parties take everything and leave no room for the secondary market, the market will naturally deteriorate, and over time, retail investors will be unwilling to enter again, leading to liquidity exhaustion and the entire market falling into a vicious cycle. The recent crazy dumping of altcoins is precisely the root cause of the lack of profit effects in the market.
When everyone unanimously believes that 'there's no profit to be made in the altcoin secondary market', the market's inflection point is approaching. Because when the market falls into absolute pessimism and nobody wants to touch anything except Bitcoin, the valuations of other coins will be continuously compressed, pushed to the lowest possible point. At that time, funds will rediscover opportunities, and the market will rekindle hope. This is the cyclical nature of the market; all rises and falls reflect emotions.
When will this critical point be reached? No one can predict accurately, but one thing is certain — the market cannot operate in the same model forever. Do not fear the current market decline; this is merely the pain of a trend reversal.
Recently, observing the situation of new listings on Binance, one can indeed sense subtle changes in the market. In the past, for a coin to get listed on Binance, it needed to have a market capitalization of at least 200 million; now? Even breaking 100 million is a rarity. What signal does this convey? The market's water level is declining, and the rules of the game may be quietly changing.
Looking back, most tokens listed on Binance were 'peaking upon launch', followed by a continuous decline. The project parties and VC investors got the biggest slice of the pie, while the secondary market retail investors took over, leading to a price collapse with almost no breathing room. This model ultimately harms the retail investors in the secondary market; it is essentially a 'winner-takes-all' situation — the project parties win, VCs may also win, but secondary market investors are basically the ones being harvested.
But what if we think differently? Suppose the new coins on Binance have a low market cap, say less than 100 million, allowing the secondary market to have room to strategize and discover value. Initially, the price is low, funds gradually enter, quality coins stand out, leading to a spiral increase and creating wealth effect, providing more profit opportunities for the secondary market. In this way, investors in the secondary market can earn, project parties can earn, VCs can earn, and even the overall market liquidity can improve; this is a 'win-win' situation.
What is the core principle of the market? A winner-takes-all business model is doomed to be unsustainable. If the project parties take everything and leave no room for the secondary market, the market will naturally deteriorate, and over time, retail investors will be unwilling to enter again, leading to liquidity exhaustion and the entire market falling into a vicious cycle. The recent crazy dumping of altcoins is precisely the root cause of the lack of profit effects in the market.
When everyone unanimously believes that 'there's no profit to be made in the altcoin secondary market', the market's inflection point is approaching. Because when the market falls into absolute pessimism and nobody wants to touch anything except Bitcoin, the valuations of other coins will be continuously compressed, pushed to the lowest possible point. At that time, funds will rediscover opportunities, and the market will rekindle hope. This is the cyclical nature of the market; all rises and falls reflect emotions.
When will this critical point be reached? No one can predict accurately, but one thing is certain — the market cannot operate in the same model forever. Do not fear the current market decline; this is merely the pain of a trend reversal.