🚨The Token Launch Trap: Why You’re Likely to Lose as a New Investor
New things tend to be shiny. Magical. And new token launches always come with hopes of massive gains.
However, you should beware if you’re jumping into new token launches, hoping to strike it big.
Buying into Launchpool projects at listing has become one of the most surefire ways to lose money. Let’s look at some recent examples:
1️⃣ Catizen (CATI) – Listed September 20. Now down 65%.
2️⃣ Hamster Kombat (HMSTR) – Listed September 26. Now down 71%.
3️⃣ Scroll (SCR) – Listed October 11. Now down 42%.
These are just a few examples, and you can easily extend this list. And by the way, the numbers already include today's pump.
So, this isn’t an anomaly. Most tokens are diving right after launch. The pattern is clear, and it does not favor new retail investors.
So, what’s causing this?
Early entries often brought great returns in the ICO and IEO days. But times have changed.
Now, launches are designed to benefit investors, VCs, and exchanges, often at sky-high valuations that drain market liquidity.
And retail investors? They’re the exit strategy, cashing out the gains of insiders and leaving the rest with losses.
Memecoins As An Alternative?
Many crypto experts consider this "broken system" one of the strongest drivers for memecoins.
Memes offer the kind of community-driven narrative and potential upside that resonates with today’s market—even if they come with their own risks.