- 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 Bitcoin 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.
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.