If you've been for any good amount of time in crypto, you know of the idea of one-cycle coins, which only have one cycle to rise and shine, and then die a quick or slow death.
Some say, that apart from Bitcoin, Ether, and maybe a few others (stablecoins aside), they are all one-cycle coins.
I believe this is a too drastic way of categorizing cryptocurrency, but if it were true, then I see a few reasons why this would happen (cumulative or not):
- the coin is designed to pump and dump (initial distribution, tokenomics, unrealistic promises versus delivery, etc.)
- catching the right cycle ride, without anything fundamental to back the pump
- there is no community behind
- there is no active development
- it's the fault of crypto people, always seeking the shining new thing and dumping the old and dusty ones
If the coin is designed to pump and dump or catches the right ride and nothing fundamentally justifies the growth, then there isn't much to say. It's like you keep pumping air in a balloon. Eventually, it will pop.
Then, can a coin survive without a community behind it? Surprisingly, the answer is yes, and we have a few examples. If the coin's price is manipulated and bots make transactions back and forth, it can. Also, if the blockchain offers services to bots/machines/AI etc., there may not be any need for a community behind it or even for price manipulation, provided they do what they say and it works.
Can a blockchain remain in the spotlight without active development? I know only one blockchain that can survive under these conditions: Bitcoin. And yet, Bitcoin is being developed every cycle. In the previous cycle, Bitcoin Lightning was introduced. Now we have Ordinals and various L2s to Bitcoin are being developed. And I doubt things will stop here.
If the most conservative blockchain gets developed, we can understand that other blockchains have no chance in the long term without active development.
Then we reach the point I tend to have the most issues with. The short-term perspective of many crypto investors gamblers. I've never been in the shoes of a professional gambler, but from what I read and listened to people who practiced this even from Hive, this has almost nothing to do with the kind of wreckless gambling that happens in crypto in many cases.
These crypto gamblers always look for what they believe will be the new coins to pump for the cycle. They will never look for coins that have been in the market for longer than one cycle and will likely dump them as soon as they don't confirm their expectations.
Don't get me wrong, it is fantastic if you catch a trend early on: look at us in crypto, in general. But the best trends last way more than 4 years. Look at Bitcoin, people are trying to catch the fresh ones with pumps that will do 100x or more and then dump, but chances to find them and then act correctly to benefit from the pump are slim. Bitcoin, on the other hand, has a 3.8x this bull market already, which was pretty much a sure thing. I don't want to say anything about HIVE yet, but its time to shine this cycle will come...
Want to check out my collection of posts?
It's a good way to pick what interests you.
Posted Using InLeo Alpha
I don't understand it either but those gamblers can do what they want to. I will avoid it because it doesn't seem to do much. At one point, I considered Safemoon due to how many people shilled it but I just felt like it wasn't worth it. That turned out to be correct.
Of course they can. People can find so many ways to lose money...
I have a hard time following all these alt and meme coins. It is like they move up so quickly, and eventually die a slow death. Some coins like Doge that seemed like a meme coin is still popular all these years. I want to be able to ride them up, but with my luck, I'll probably end up the one caught with the useless coins.
I don't bother tracking them.
Doge is an interesting case. It has a strong community behind it, popular shillers (Musk), it is a POW chain, and at some point, there was no active development going on for it. Great case for a meme coin, from what I heard. But still a meme coin, with the inevitable pump and dumps.
I think active development is a requirement for most blockchains to stay relevant. Most of these crypto gamblers who follow short term trends always get rekt as it's quite hard to catch the trends at the right time and exit before it fades away.
Adapt or die...
The worst thing is they might hit a home run once or twice, and then they persevere thinking they've got this figured out and lose on everything else.
I basically feel that while many people might be attracted to BTC, they only ever go on to make profit with alts, so it's unfair or shallow to think crypto is all about BTC and Ether. The numerous projects all over and Blockchain is what creates retention all over.
Fair comment... As long as you have some sense of loyalty to an alt and its ecosystem, sounds about right. It's what we do on Hive, and I'd be lying to say it hasn't worked well for me.
It's funny... I talk quite often about BTC (as opposed to HIVE, for example) when price or market is involved, but that's only because BTC has a major influence on what everything else is doing.
You're right, we mostly only talk about BTC and it's movement because it determines where the price goes. Infact it's the biggest reason why people talk about it, jo disrespect to it all.
I bought SafeMoon in the first week it came out knowing full well it was a pump and dump and I did pretty well by taking profits along the way. But most are just a huge gamble! You need development for these other chains to have value or even survive. We need more development on Hive, a few more big ones beyond Splinterlands to really kick into gear. Leo is trying their best, but It would be nice to see another huge development.
I wonder if some big ones are waiting for VSC to become stable. At some point, SPK Network will reach its mainnet too.
I hope they do well!
VSC seems so, and the pace of development is quite quick. On SPK, things seem to move slower, but they are in testnet also.
But it will be very hard for a coin to pump without having any backup of community….
Not really. If there is someone with enough money playing market maker, it sure can do whatever that person wants, especially when we talk about altcoins.
But for most coins, no community = dead coin.
Bitcoin will stand the test of time
It won't be alone...
Good post @gadrian. I would never be interested in the pump and dump coin. It would be such a waste to me. If people think bitcoin is a pump and dump coin, they got it all wrong and have been misinformed. They don't understand about the ups and downs and if they ride it out they will come out better in the end than when they started. Please correct me if I'm wrong. Thank you and have a great day'! !BBH !CTP #ctp
Nah, it's mostly other coins that have this behavior in the market.
Pump and dumps happen much quicker than Bitcoin cycles.
OK @gadrian that's good but I'm sure there might be some misinformed out there or not informed folks at all that think bitcoin is bad - like my sister that is almost 80 and won't even use a computer.
😂
I'm sure there are. And all technology is generally as bad or as good as we use it for.
Yes, indeed @gadrian right! 😃👍
sharing is caring
Congratulations @gadrian! You have completed the following achievement on the Hive blockchain And have been rewarded with New badge(s)
You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOPCheck out our last posts:
This post has been manually curated by @bhattg from Indiaunited community. Join us on our Discord Server.
Do you know that you can earn a passive income by delegating your Leo power to @india-leo account? We share 100 % of the curation rewards with the delegators.
100% of the rewards from this comment goes to the curator for their manual curation efforts. Please encourage the curator @bhattg by upvoting this comment and support the community by voting the posts made by @indiaunited.
If we are to work within the industry, we all must know about its cycles or we will never be able to profit from within the industry.