Text: Shi Sitong
Recently, the issuance of "Trump Coin" has set off a carnival in the cryptocurrency industry. The violent fluctuations of virtual currencies and the "myth of wealth creation" are also attracting many investors.
It is understood that Trump Coin started trading at an opening price of $0.1824, and the price once soared to around $80, with a market value exceeding that of many old tokens such as TRON and Avalanche, and then continued to fluctuate and fall. In just three days, Trump Coin fulfilled the "dream of getting rich" for many people, while also making countless speculators shout "explosion".
In fact, the virtual currency market fluctuates extremely violently, and extremely high risks have become a consensus in the industry. In the view of industry insiders, virtual currencies are difficult to analyze using traditional fundamentals, valuation and other methods, and are more like alternative speculative products. If investors are interested in the crypto market, they must undergo systematic learning and enter the market cautiously.
1"Trump fever" continues to spread, and the crypto market has attracted attention
It is understood that this wave of "Trump fever" has also spread to the hot searches of major new media platforms, attracting many "cryptocurrency novices".
"I bought it at $30 and sold it at $78." Mr. Wu, a cryptocurrency investor, told Cailianshe reporters that because he waited and watched for a while at first, he missed the opening low of Trumpcoin, but fortunately he decisively sold it at the high point of $78 and "got off the bus" safely.
In Mr. Wu's view, this "Trump fever" is "a moment of wealth." It is understood that Mr. Wu started to get involved in blockchain 10 years ago and has been in the cryptocurrency circle for many years. When new coins are issued, he usually buys them according to the situation. "New coins generally rise when they are issued, and how much you can earn depends on your ability to control them," he said.
Some are happy and some are worried. After the highlight, Trump Coin began to fluctuate and fall continuously. With the big rise and fall, the mood of another investor, Mr. Gao, also fluctuated. "It is best not to buy it. (Speculating in coins) may make you rich, or you may lose all your money." Mr. Gao sighed to the reporter of Cailianshe.
It is reported that after the issuance of Trump Coin, Mr. Gao bought 60 "testing the waters" at an average price of about US$32, but he did not expect the increase to be so high. Therefore, after accidentally missing the previous high of US$82, Mr. Gao chose to continue to "hold the coin" and wait and see.
At that time, Mr. Gao still had high expectations for the short-term trend of Trump Coin. Before Trump officially took office, Mr. Gao bought 80 Trump coins again at a price of US$53. However, things did not go as planned. Mr. Gao failed to wait for Trump Coin to "revive" and finally chose to clear his position at a price of $32, leaving the market regretfully in this wave of enthusiasm.
2 The extremely high risk of virtual currency has become a consensus
"Because Trump did not publish any documents related to the encryption industry on the day he took office, Trump Coin fell a large part." Regarding the current trend of Trump Coin, Shuai Teng Blockchain Web3 Investment Research Manager Chen Shuai analyzed to Cailianshe reporters.
Looking forward to the subsequent market, he believes that Trump's term has just begun, and Trump Coin may have more possibilities in the next four years. "With the loosening of encryption policies in the past four years, more people may join, and even celebrities from other countries may follow suit and issue coins."
For investors who are waiting and watching, Chen Shuai suggested that virtual currency is different from the traditional stock market, "The currency circle is very risky, and capital preservation is the first priority."
At the same time, the above-mentioned investor Mr. Wu also reminded that investors who do not understand blockchain and virtual currency should be cautious in entering the currency circle. The rhythm of the currency circle is "fast in and fast out", and the risk is also very high.
In Chen Shuai's view, virtual currency transactions themselves have certain judicial risks. Regardless of whether they lose or make money, they are likely to receive funds involved in the case during the withdrawal process, resulting in the freezing of bank cards and asset losses. For "currency circle rookies", it is very likely that they will suffer financial losses due to lack of knowledge in identifying the authenticity of projects and immature trading skills.
In addition, some industry analysts have bluntly stated that virtual currencies are difficult to analyze using traditional fundamentals and valuation methods, and are more like alternative speculative products and are not suitable for ordinary investors.
"The virtual currency market fluctuates extremely violently, far more than ordinary stocks, and its potential risks are self-evident." He said. At the same time, due to the high concealment of virtual currency transactions and the difficulty in identification and recognition, related transactions are also easily used for money laundering, illegal fundraising, tax evasion and other illegal and criminal activities.
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