Low Cap Altcoins Experience Frequent "Pump and Dump" Rollercoaster Rides, Community Divided
BlockBeats News: Recently, against the backdrop of easing tensions between the US and Iran and btc-42">Bitcoin trading sideways at a high level, a series of low-cap altcoins have frequently staged "rocketing" roller-coaster trends. From the repeated pump and dump of SIREN to the one-month pump and one-hour dump of ARIA, the fluctuating market has attracted many high-risk appetite investors.
Analyzing these "rocketing" coins, they often share the characteristics of highly concentrated spot chips, having a perpetual contract trading pair on Binance, and strong manipulation behind the scenes. Despite Binance releasing a Market Maker Risk Guide on March 25, warning against one-sided selling and abnormal trading behavior, the "rocketing" trend has only increased since entering April.
In response to this phenomenon, some members of the crypto community have stated that this is not necessarily a bad thing, as "the most attractive aspect of crypto lies in its high volatility; it is this volatility that attracts liquidity." Indeed, during these high volatility periods for these coins, their daily futures trading volume can often reach hundreds of millions or even billions of dollars, undoubtedly serving as a shot in the arm for the crypto market, which is still in a bear market.
However, risk-averse investors have expressed concerns. They believe that these skyrocketing altcoins lack fundamental support and are purely a financial game, where the ultimate outcome of frequent heavy participation can only be the asset going to zero.
BlockBeats reminds users that regardless of risk appetite, whether choosing to participate in this trend, it is important to recognize that these short-term skyrocketing coins belong to a high Beta rotation category, essentially engaging in a game with whales with strong control over the chips, where retail investors are at a significant disadvantage. Therefore, in trading, it is crucial to control positions, set strict stop losses, and is not suitable for conservative holding.
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