I can’t help but notice and increase in the pain levels of altcoin traders lately.
From monitoring their Twitter updates it seems likely many have experienced quite a few losing trades lately.
This outcome seems probable. With coin releases like AegisCoin, IcebergCoin, Spartacus, ApexCoin, DarkCash, EliteCoin, and ConcealCoin losing cash is simple.
It’s not only new coins causing the woes. Organized pumps on existing coins like VootCoin have also fallen short of expectations in the last 24 hours. In the last few minutes alone WitchCoin and USBCoin have drastically lost value. In fact, so many coins have turned scam in the last 7 days it’s getting nearly impossible to sort them all out.
The scammers are becoming more relentless with each passing day. They can’t believe how easy it is to keep pulling the same fraud again and again and they aren’t going to quit under any circumstances.
Mega Dumps Are Causing Traders To Sing The Blues
The effect these mega dumps are having on the altcoin markets is pronounced. Investor confidence is eroding daily and Bitcoin is flowing from the hands of the community into the coffers of serial scammers.
There are signs that even the ‘greater fool‘ that everyone relies on to get out of disastrous trades is not showing up.
The current new coin pump and dump does not allow for a proper coin distribution. Early miners are getting such a high percentage of short-mining duration coins that they are able to dump a massive amount of coins on the market. Short mining periods mean very few people even download wallets. Most of the coins are held directly on the altcoin exchanges and not in wallets. After a short period of volume manipulation, Whales decide to exit the trade. Lately they have been doing that with huge dumps that collapse the coin price.
Worse, scam Devs also exit the trade inelegantly. They dump ‘extra coins‘ they manufactured that they hid from the public all at once. They need to exit the trade fast so they don’t get caught before dumping. They will dump millions of coins at once and break the coin’s back.
After their dump people will ‘research‘ the coin and determine whether it was a genuine scam or just a massive panic dump. In both events the result is the same. The coin volume dries up, the price hits the floor, and the coin is essentially dead.
These unexpected, massive dumps are happening daily. Now the ‘greater fool‘ seems to be altcoin insiders who are in the bad habit of mining and trading every new altcoin. Since the coins have such truncated life cycles, there is no time to build the coin to where money from outside of the current crypto circles arrives to push the price skyward.
It’s only the same crew of people trading, and none of them trust the coin enough to hold it for very long! As you can imagine, if there is even a hint of trouble, most holders will bolt for the hills.
Currently mainly extreme short-term thinkers are buying most of the new altcoins. At the first sign of trouble they will dump. A market made up primarily of weak hands who are looking to clip short-term profits can’t sustain large and fast increases in price. In other words, what goes up must come down. The fall to the bottom is usually as dramatic as the short rise to the top!
Don’t Take Your Eyes Off Your Trades!
If you are trading new altcoins for short-term profit potential you will need to monitor your trades closely.
When the move towards the exits occurs it will be swift and brutal.
For many it’s becoming easier to avoid these new coins altogether. The risk is outweighing the reward in numerous cases.
If you decide to buy or mine a new altcoin demand great communication from the Dev team. They will need to stay active in order to calm trader’s nerves. Right now there are a lot of nervous people in the community and it’s hard to blame them.
Thanks for stopping by and reading. If you have any comments please leave them below.
