Let's talk about the Litecoin-Walmart rumor.
In the world of sports, soccer in particular, there is a popular phenomenon called the Mexican wave, where spectators stand and wave in sequence, an act that appears to be so coordinated that to the viewers on television, the crowd seems to swell and belly like the ebb and flow of a real sea wave. I am very often reminded by this in the sudden astronomical rise and fall in cryptocurrency prices, particularly when the rise in prices is fueled by a rumor and has little or no substantial staying power.
Was there a really a Litecoin-Walmart Partnership?
Yesterday morning, when much of the cryptoverse was either trading sideways or undergoing a correction in prices, there was a sudden spike in Litecoin prices followed by a swift plummet. What had happened?
Buy the rumor. A rumor had been started after a fake news release was published by communication service, Globe Newswire, stating that Walmart was set to accept Litecoin payments. Like the Mexican wave, the rumor quickly gained legs with even some mainstream media outlets reporting on it. Litecoin prices skyrocketed.
To stem the tide, Walmart issued a release refuting the rumor. The organization had announced no such plan. There was no such partnership. Litecoin's rocket nosedived.
To be sure, some fortunate traders may have gotten in on the spike, but many of us were only able to blink before prices fell again.
To Relist or not to Relist: A Technical Glitch Causes a Ripple
Recently, Ripple's coin, XRP, also saw a sudden spike in prices despite its ongoing legal woes with US government oversight agency, the Securities and Exchange Commission (SEC). At the time, due to a reported technical glitch, it appeared as though cryptocurrency exchange, Coinbase had relisted the XRP token for trade after delisting it in the midst of the XRP-SEC battle.
Investors went wild! Prices spiked. Coinbase clarified that the appearance was a glitch and reaffirmed that they were not currently trading in the coin. XRP prices tumbled.
Have you met my puppy?
Over the past year, the cryptic tweets of Tesla CEO Elon Musk were enough to send the investing community into a wild frenzy. One day it's Baby Doge, doo, doo, doo, doo, doo, doo, the other it's, meet my new puppy, Floki has arrived. And again, after each tweet, memes were floating about like crazy as proponents of the related meme coins urged investors to: Pump it, pump it, pump it! Buy, buy, buy, buy!
Getting on Board The Rocket to the Moon
Now, it's very easy to make decisions based on the adrenalin rush brought on by FOMO.
But a word of caution: As an investor, you do not want to be chasing ghosts, and struggling to FOMO into projects hoping to catch a win before the price turns around. Do not be driven by fear and greed. This is how investors lose their money. Instead, research projects carefully. Examine their track record. Make good, sound, careful investing decisions that you can trust in and feel comfortable with.
Be safe out there!
I hope you enjoyed my post, guys! Until next time, attenzione!