Each day patterns repeat themselves in Altcoin City.
In fact, it’s fair to say almost identical patterns repeat themselves exactly month after month and week after week.
Despite that, there are still plenty of people who seem amazed when the obvious outcome occurs.
Although ‘Dev’s will claim otherwise, most altcoins are not long-term projects. It may take some who are reading right now a little time to digest this fact, but it’s important they do. Most altcoins are more akin to straight up cons than they are to long-term global currency projects.
It’s a rare happening indeed when an altcoin is designed to last a lifetime.
A majority of launches are executed on behalf of a ‘Dev team‘ that is interested in one major pump and dump.
Here are some logical reasons Coin Devs would leave (and do):
- They planned on dumping as fast as possible.
- They were naive and underestimated the amount of work that goes into long-term altcoin success.
- They aren’t making any money.
- Their real-life obligations are not allowing them extra time for the project.
- Community support for the project never materialized.
- They don’t have money to continue supporting the coin on their own.
Why Would Devs Stick Around?
The reasons a coin ‘Dev‘ would stick around are much less obvious. That means the better question might just be: why hasn’t the ‘Dev‘ left yet for coins where the main project lead is still hanging arount.
Most altcoins are never going to challenge Bitcoin for virtual currency supremacy. It’s not in the cards. Most altcoins will also not even offer consistent opportunities for the Dev to earn. Those ‘Devs‘ who take on the projects as a ‘labor of love‘ are probably best situated for long-term work on their cryptos. Those who seek to get rich quick are going to have to take a shorter route to their end destination.
The fastest money a coin Dev can possibly make is to premine/instamine and then quickly dump during the initial euphoria of an exchange listing.
There’s no way around it and that’s a great temptation for anyone. If you instamine/premine and dump you stand the chance of earning a good amount. The longer you hang around trying to ‘Dev‘ a coin the more likely the price drops on that cryptocoin.
It seems likely that this current trend will continue. Being a full-time Coin Dev is not going to be a profitable job for too many people. However, creating and dumping new altcoins IS profitable. There’s no reason to expect that people will stop engaging in this behavior when it clearly works. Instead we can expect more and more of it.
Since it’s almost inevitable that a coin Dev is going to disappear, smart traders need to be aware of this probability from the very start. That way they can protect themselves against the dump.
Right now numerous trends exist that can hurt your potential to earn from an altcoin investment. If you plan on diving in on this sector, make sure you pay careful attention to ‘the what, the why, the where, and the who.’ Failure to dig in and devour the details can easily bury you.
Stay on guard and make sure you’re ready to get out as fast as possible.
Thanks for stopping by and reading. If you have any comments, please leave them below.