Animal City Madness
Recently the cryptocurrency world has been dominated by all kinds of fresh cute animals, the first to bear the brunt is Shiba Inu coin (SHIB INU). According to CoinMarketcap data, SHIB’s price has soared from $0.00000006 at the beginning of April to a record high of $0.00004 today, up 610000% in just 30 days.
Due to the strong drive of the world’s richest man Musk since this year, Doge has soared from $0.008 at the beginning of the year all the way to a high of $0.74 in less than 4 months, soaring nearly 100 times.
The surge of Doge also triggered a crazy Fomo sentiment in the market, and people started to look for the next Doge coin, eager to seize the new 100 times opportunity.
It was in this context that a tweet posted by Musk on May 7 sparked speculation.
The SHIBA team immediately replied below that he actually wanted the SHIBA coins to go crazy. He has a bad habit of not speaking directly.
Then SHIB started to go up like crazy ….
Then in just a few days, SHIB skyrocketed 300%, and major exchanges began to scramble to get SHIB online. After OKEx, Firecoin, Coinan and other big completion exchanges went online, the price was pushed all the way up to a record high of $0.00004.
With such successful examples as Doge and SHIB, various pets couldn’t sit still, and tokens such as PIG and AKITA were opened to pull, and PIG piggy coin even soared from 0.00000018 to 0.0000056666, soaring 30 times in a week’s time, becoming the king of animal tokens pulling the pan after SHIB.
One, new investors run in, animal coins cost lower
If the old leeks in the cryptocurrency circle buy old mainstream coins, or some DeFi tokens, and the new investors who enter actually do not understand the history and value of these coins at all, they are the ones who enter because they recently heard about the surge of SHIB and DOGE coins, and once they enter, they of course buy the ones they know and have heard about.
These small animal coins not only have a natural affinity, and the purchase cost is much lower, generally more than 6 zeros after the decimal point, only need to spend a few hundred dollars to buy tens of millions of hundreds of millions, while if you buy bitcoin, you may only be able to buy 0.00001, which leads to the relative old mainstream, new people are more willing to buy small animal coins.
A large influx of new people, and all rushing to buy so few coins, a large amount of money into a very small number of coins, which accelerated the general surge of zoo tokens.
Second, strong community consensus
All along, the traditional investment community benchmarks Warren Buffett, Charlie Munger and others are extremely disgusted with bitcoin, believing that bitcoin has no real value support, pure air, bubble.
Now, those who invest in mainstream cryptocurrencies such as Bitcoin and Ether are seeing the madness of Doge, SHIB, PIG and other animal parks, and believe that these coins are the real air coins, not backed by landed applications, and that those who buy them are fools.
However, no matter how the outside world views Bitcoin, Bitcoin has risen from a few cents a decade ago to a maximum of more than $60,000 a piece today, gaining more than ten million times; and DOGE, SHIB are also with a hundred times, a thousand times, ten thousand times the rate of increase, telling the entire financial world that the surge really only requires consensus.
The community-based animal coin represented by SHIB has now established a very broad consensus globally, with a good mass base to support the bottom, and today’s new media spreads extremely fast, coupled with the fermentation of the secondary market, it is easy to push up the fever, thus attracting more people to join.
Third, investors’ strong expectation of getting rich
After years of development, bitcoin has developed to a relatively mature and stable point, and its volatility is relatively small. If it rises from its current position to $100,000, it will only be a 1x increase, while small-cap, lower-priced animal coins are often able to surge ten times a hundred times in a few days, which is far beyond the reach of old mainstream coins like bitcoin and ethereum.
It’s because these small-cap coins and cheap coins are capable of short term spikes and explosive pulls, allowing investors to quickly double their assets, and the heat is high enough and the consensus is strong enough that investors see them as a lifesaver to make a fortune in the cryptocurrency world, and the one thing the cryptocurrency world is not short of is wealth creation myths.
Last month, South Korean media reported that a Samsung employee made more than 40 billion won (about 230 million yuan) investing in virtual currencies and resolutely submitted a resignation letter, which directly ignited the enthusiasm of South Koreans to speculate in coins, and the fomo sentiment quickly spread to the world.
This has directly ignited the passion of Korean people to speculate on coins, and the fomo sentiment has quickly spread around the world.
Fear of the market
The cryptocurrency world has produced many myths of the zero to something, from losers to mega-rich.
This has led to the fact that no matter who is in this circle or who has just entered this circle, most of them come with the mentality of getting rich, which is not a normal investment mentality, but a “gambling and speculation” mentality.
To borrow a phrase from Pan Zi is: the water here is very deep, you can not grasp.
In fact, no matter how many stories of wealth creation there are, those who can really make money in this circle are still a minority, because the crypto market is extremely volatile, and it can skyrocket several times in one day, and it can also fall back to the original point quickly, directly making investors fall from heaven to hell.
Therefore, new investors should not just see the myth of wealth creation in the cryptocurrency world, but should also see the huge risks hidden in it, and only learn to fear the market in order to be invincible.
The recent small animal coins, although very hot, are highly volatile, and can skyrocket several times or fall back quickly. The ones we can hear about getting rich through animal coins may only be survivor bias, and most of the examples of cutting meat, or even going to zero, are the ones that are really worth warning about.
This type of MEME tokens, although hot for a time and have some community consensus, can easily come and go quickly. For this kind of short-term hotspot, the good side is that it attracts a large number of new people to enter and pay attention to the blockchain industry. The success of SHIB and DOGE lies in popularizing what decentralization and community-based organizations are to the masses, thus promoting the popularization and massization of blockchain in the whole society. However, the bad side may also cause newcomers to deviate from the perception of the blockchain industry, thus simply thinking that blockchain is an industry based on coin speculation and speculation, which in turn plays a limiting role for the industry.
We believe that, with the continuous progress of the underlying technology of the blockchain industry, the wider application of blockchain on the ground, including the charm of decentralization, fairness and impartiality of the idea must be able to penetrate into the daily life of the people, which requires the common efforts and persistence of blockchain practitioners and the majority of enthusiasts, and never by short-term value speculation.
After all, in the long run, the things that are speculated today may not necessarily still be there, while the historical wheel of blockchain development will keep rolling forward.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/cryptocurrency-plays-animal-city-how-long-can-the-fomo-craze-last/
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