“Don’t Invest in Old Coins,” Expert Says, 99.99% of Altcoins Fail

Coin Edi­tion —

• Top cryp­to trad­er warns against invest­ing in old­er alt­coins, cit­ing a 99.99% fail­ure rate.
• The trad­er stressed that alt­coins often fal­ter after their ini­tial cycle after accu­mu­la­tion and dump­ing by project teams.
• He claims is the only coin with the proven abil­i­ty to stand the test of time.

Cryp­to Feras, a well-known Bit­coin trad­er, has tak­en to X to issue a stark warn­ing to the cryp­to com­mu­ni­ty con­cern­ing their invest­ment choic­es, stat­ing, “This is why you DON’T invest in OLD Coins.” 

In the tweet, Feras point­ed out that an over­whelm­ing 99.99% of alter­na­tive cryp­tocur­ren­cies fail to endure beyond a sin­gle mar­ket cycle. He con­trast­ed the sit­u­a­tion with the resilience of Bit­coin (BTC) in the market. 

This is why you DON’T invest in OLD Coins99.99% of #Alt­coins nev­er make it vs. #BTC more than a sin­gle cycle1st cycle is where project team/VCs and whales hold & sell to retailers2nd cycle is noth­ing more than an echo bounce led by poor retai­lors like our­selves pic.twitter.com/FPH1XZVqar

— Cryp­to Feras  (@FeraSY1) Sep­tem­ber 16, 2023

Fur­ther­more, Feras high­light­ed the tra­jec­to­ry typ­i­cal of alt­coins in the mar­ket. He explained that dur­ing the ini­tial cycle, project teams, ven­ture cap­i­tal­ists (VCs), and influ­en­tial investors often accu­mu­late these coins to lat­er sell them to retail investors. 

The pro-Bit­coin trad­er believes that the seeds of alt­coins’ even­tu­al demise are sown in the first cycle process. Mean­while, Feras char­ac­ter­izes the sec­ond cycle as lit­tle more than an “echo bounce,” pri­mar­i­ly dri­ven by inex­pe­ri­enced retail investors who are, in his words, “poor retail­ers like ourselves.” 

This descrip­tion under­scores the pop­u­lar sen­ti­ment that the vast major­i­ty of alt­coins are unable to com­pete sus­tain­ably with Bit­coin over time. Feras’ cau­tion­ary mes­sage is a stark reminder of the inher­ent volatil­i­ty and risk asso­ci­at­ed with the cryp­to mar­ket, par­tic­u­lar­ly in rela­tion to old­er altcoins.

Last Octo­ber, Coin Edi­tion report­ed that 12,100 cryp­tocur­ren­cies essen­tial­ly ceased trad­ing activ­i­ties. The report was based on data pub­lished by Bloomberg in col­lab­o­ra­tion with the mar­ket track­ing plat­form Nomics.

The report empha­sized that the 12,100 alt­coins nei­ther fall into the cat­e­go­ry of tech­ni­cal­ly “dead” nor “alive” tokens. It described them as zom­bie coins as they have remained dor­mant in trad­ing for the past year.

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