This year, there's one keyword that can't be avoided in the crypto"monster coins".
In the past week, $RAVE experienced an extreme price movement of nearly 40 times. From $SIREN and $STO to earlier $PIPPIN, $RIVER, and $BEAT, these types of assets can "take off against the trend" in almost any market environment.
Even when the overall market is sluggish, some people are still obsessed with it, trying to find opportunities from the violent fluctuations, and even gradually forming a so-called "demon coin logic".
But the essence is actually very simple: this is not a normal transaction, but a direct game between retail investors and institutional investors.
The so-called "demon coins" are not just those that rise sharply, but more importantly, those that are highly controlled.
Most of these cryptocurrencies have extremely high concentrations of spot trading volume, often exceeding 95%. Combined with the futures market, they create liquidity and a large number of counterparties through repeated pump-and-dump schemes. Many people believe they can profit from rising prices, so they chase the upward trend; others think it will eventually fall and go short. The result is—regardless of whether they're bullish or bearish, they all end up being the ones who get fleeced.
The funding fees, in particular, are extremely unfriendly to retail investors. Market makers control spot prices while continuously collecting funding fees through contracts, constantly "draining" funds even during sideways trading. The larger your position and the longer you hold it, the higher your costs become. In the end, it's not that you're wrong about the direction, but that you're dragged down by time and fees.
More importantly, this market is almost entirely unfair. Think you're safe by long with the big players? A single sharp drop can wipe out both long and short positions. Want to hold physical shares? The shares are concentrated in the hands of the big players; when they'll go to zero is completely unpredictable. Many people don't lose because of poor judgment, but because they entered an unequal game from the very beginning.
Is it possible to identify "monster coins" in advance? It's very difficult. They don't activate because certain conditions are met, but rather because they are manipulated from the start, which is why they exhibit those characteristics. Essentially, it all depends on one thing: whether there's a market manipulator (or a large investor).
As for when a collapse will occur, there are some reference signals in the market. For example, if prices rise but open interest decreases, or if there is a large-scale liquidation or a sharp decrease in open interest at a certain price level, it often means that the major players are starting to withdraw. Once the opposing positions disappear, the price loses its support, and the decline will be very rapid.
However, it's important to understand that these methods are essentially "survival guides," not "profit strategies." In this game of extreme information asymmetry, what retail investors can do is not to beat the big players, but to try their best to avoid becoming the ones being exploited.
Ultimately, "monster coins" are never opportunities, but rather tools for filtering emotions and perceptions. Staying away from them is often more important than participating.
Cryptocurrency markets are highly volatile; caution is advised when entering the market. This is just my personal opinion, not advice, and is for sharing purposes only.
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