Why Most Altcoins Will Never Recover Again

[passwordnow]

Thus altcoins are more cruel, if they do not survive and provide new innovations they will die.

That's their fate, I've seen a lot of them for the past years that they've become good in the beginning but when years have passed. They're no longer liked by the investors and they have pulled out each of them until the project has died. The developers can't also be blamed with that when they have exerted too much effort in it because they're likely one of the people who took profits as well that made the valuation of the project lower. They have to secure their profits before everyone starts to dump it.

[Kavelj22]

Thus altcoins are more cruel, if they do not survive and provide new innovations they will die.

That's their fate, I've seen a lot of them for the past years that they've become good in the beginning but when years have passed. They're no longer liked by the investors and they have pulled out each of them until the project has died. The developers can't also be blamed with that when they have exerted too much effort in it because they're likely one of the people who took profits as well that made the valuation of the project lower. They have to secure their profits before everyone starts to dump it.

I can't get your point by saying that a lot of them have become good in the beginning but then became unliked by the investors, because it is not the price nor the investors who determine if the project is a success or not. Most of those projects started with great promises then quickly fail are pump and dump tokens that were mainly created to generate some quick profits for the team and few early investors before to sleep forever in losers wallets.

Except for few cryptocurrencies among tens of thousands of projects, I can proudly confirm that the great majority are shitcoins that were created for the single purpose is to scam investors money in a polite way.

[d5000]

I think OP is correct and I would merit the post if they participated actively in the discussion ...

I think there are several effects in play.

First, there is the tokenomics problem. Many altcoins are massively premined. And in some moment the original holders (founders, ecosystem, ICO buyers, seed investors) will dump their coins. Often a coin has a lifespan of a couple of years, and then once the OG dump begins massively, they simply fade away.

But there is also the novelty exhaustion problem. Altcoins often try to find investors telling them that they are something "new", they solve a new problem, or they try a new algorithm. This is a problem because there are only very few novelties of this type that can't be adopted by other altcoins. Eventually they will need to create some kind of sustainable "business model", and most fail at that.

Thus the effect of many older altcoins "slowly dying" is very easy to expĺain

How to find gems? Well, I think old coins without premine may have the highest chances, but besides a few (like XMR) they currently are not talked about much and have very low market cap and volume. If a community manages to create hype of such an old coin again, that could be a massive opportunity. The second group I'd look at are those with a premine but which was already a very long time ago. Ethereum is the prime example, but there are also some smaller coins like Tron created pre-2020 where the "founders dump" effect may have already happened and they have created an active ecosystem.

[Abiky]

Alts don't follow the pattern of Bitcoin i.e. no matter how much Bitcoin price goes down, we are very sure that it will eventually bounce back. If an alt goes considerably down in price then its very difficult for that alt to recover. Top alts like Eth, BNB have the capability to recover from bearish season. The new alts are risky for investment and if you are investing in new alts then make sure to quit them as soon as you see profit. Its not recommended to hodl new alts for long duration. 

That's because most altcoins are driven by hype. They have no real utility/value whatsoever. Low-cap coins are the ones mostly affected by a bear market. There's zero chance for them to recover. And "blue chip" coins or top-ranked alts in market cap? They only move when Bitcoin is going to the moon. Chances for them to reach a new ATH are high. But not guaranteed. Because even a coin like ETH (which is the second-largest crypto by market cap) has been struggling to reach a new ATH and retain higher prices for long.

You'll win more by simply holding Bitcoin long-term, than any other altcoin. Only choose altcoins when you want to make short-term profits. This can achieved if you know exactly what you're doing. The higher the reward, the higher the risk will be. For what I know, anything can happen in the future. I'd pay close attention to the market, just in case.

[dwyane36]

You'll win more by simply holding Bitcoin long-term, than any other altcoin. Only choose altcoins when you want to make short-term profits. This can achieved if you know exactly what you're doing. The higher the reward, the higher the risk will be. For what I know, anything can happen in the future. I'd pay close attention to the market, just in case.

Overall, you’re right in noting that holding BTC is a "win-win" strategy, especially in the long term. However, when it comes to alts, not all of them are hopeless as long-term holdings. There are some that, in my opinion, could be promising and, consequently, profitable in the long run, rather than just for short-term speculation.

[Shinpako09]

There are a lot of altcoins being launched every year, and once the hype is over and investors make a profit, it’s normal for them to look for a new coin to invest in again. They will go where they think they can make profit, which is completely normal. The communities of those altcoins are not strong enough, even if they claim to be utility tokens. In reality, it’s not that easy to gain loyal holders in this industry because most people prioritize profit above everything else. Eventually, the devs also become less active and end up abandoning the project due to low support from the community.

[dansus021]

I agree with you but not all old altcoin isnt recovery etherum trx is one old coin and still recovery although is not that big. If you meant that altcoin that really old like digibyte or dashcoin the answer is yes i dont think they gonna wake up again in the future because like you said crypto always had narrative and they need active community and the development

So if there is no active development and try to catch the narrative people are just not into it

[ndutndut]

There are a lot of altcoins being launched every year, and once the hype is over and investors make a profit, it’s normal for them to look for a new coin to invest in again. They will go where they think they can make profit, which is completely normal. The communities of those altcoins are not strong enough, even if they claim to be utility tokens. In reality, it’s not that easy to gain loyal holders in this industry because most people prioritize profit above everything else. Eventually, the devs also become less active and end up abandoning the project due to low support from the community.

Yes, that's true. That's what happens with every new coin its cycle will always be like that building a community to keep the project going with the lure of strong fundamentals, but after achieving profits the developers will abandon the project. Most altcoins are created solely to profit from the suffering of others.

So, it's likely that most altcoins will never recover to their previous ATH levels. This isn't just a temporary bearish opinion it's a similar pattern for every altcoin every time they reach an ATH. This all happens because most have an unlimited supply which ultimately leads to inflation not to mention years of vesting. When the price rises early investors and developers gradually sell into the market. This creates a dominant seller base that can't be offset by buyers.

[asriloni]

I agree with you but not all old altcoin isnt recovery etherum trx is one old coin and still recovery although is not that big. If you meant that altcoin that really old like digibyte or dashcoin the answer is yes i dont think they gonna wake up again in the future because like you said crypto always had narrative and they need active community and the development

So if there is no active development and try to catch the narrative people are just not into it

It's kinda weird you mention ethereum and trx. I think it's common knowledge those coins are old coins. However, those coins still able recover because they have utility. They have big community, development and ecosystem. They are fulfilling what already said by OP as the keys to keep survive even during the bearish market.

Other than that i agree with you OP. You literally says about the truth the only coin/token with utilty that can survive. 99% of crypto are only used for hit and run just to rack some money from retail. However, it's very sad we still have so many degens that will never stop scammers to extract money from market.

[ultrloa]

I agree with you but not all old altcoin isnt recovery etherum trx is one old coin and still recovery although is not that big. If you meant that altcoin that really old like digibyte or dashcoin the answer is yes i dont think they gonna wake up again in the future because like you said crypto always had narrative and they need active community and the development

So if there is no active development and try to catch the narrative people are just not into it

It's kinda weird you mention ethereum and trx. I think it's common knowledge those coins are old coins. However, those coins still able recover because they have utility. They have big community, development and ecosystem. They are fulfilling what already said by OP as the keys to keep survive even during the bearish market.

Other than that i agree with you OP. You literally says about the truth the only coin/token with utilty that can survive. 99% of crypto are only used for hit and run just to rack some money from retail. However, it's very sad we still have so many degens that will never stop scammers to extract money from market.

Although his sentence is quiet confusing, but I think what he mean out there is Ethereum and Trx will recover aswell. Although not old coins will recover, since many of those token are been created for hype and FOMO or worst just to run a scam then stole the money of those people buys it.

That's why its better for investors or traders to stop putting huge money on shitcoin. Better to look for coins which have great fundaments and utility, because most of this coins will survive for long time.

[Odusko]

Thus altcoins are more cruel, if they do not survive and provide new innovations they will die.

That's their fate, I've seen a lot of them for the past few years that they've become good in the beginning but when years have passed. They're no longer liked by the investors and they have pulled out each of them until the project has died. The developers can't also be blamed with that when they have exerted too much effort in it because they're likely one of the people who took profits as well, which made the valuation of the project lower. They have to secure their profits before everyone starts to dump it.

We can not expect success from projects that don't have a good utility demand for their projects. Most of the tokens and coins have no clear use case mechanisms and lack future-oriented systems to keep their relevance in the market. A lot of them got created just by following the hype, which most times never ends well for them in the long term, since they are designed to pump in price for a short time.