Sirwin
Sirwin

The Crypto Chosen Ones

By johnwege | johnwege | 7 Feb 2023


Ever since Bitcoin has been created, it has been the king of cryptocurrency. It was the first and is responsible for the existence of this market. It is the magnet that controls the price movements of the entire crypto market. When Bitcoin’s price moves up, altcoins follow, and when BTC’s price drops, altcoins once again follow. It is also the standard to which all new cryptocurrencies are compared. How do they stack up in terms of decentralization, security, community, inflation rate, who is the creator, tokenomics, pre-mints, halvings, and the list goes on. Like it or not, currently, the future of the crypto market is dependent on the success of Bitcoin. If it continues to become as successful as most of us anticipate, the future for cryptocurrencies, in general, will be very bright. However, if Bitcoin were to fail, that could spell doom for this market.

Since Bitcoin’s creation, it has always remained at the #1 spot in terms of market cap. In the years that followed there has been an endless supply of new projects hitting the market that were claiming to be the “Ethereum Killer.” That is because many of the recent most hyped projects have been smart-contract blockchains. While over-taking Ethereum is an incredibly ambitious goal. The real trophy that everyone wants to win is overtaking Bitcoin and becoming number 1 in this market.

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Over the years there have been many “chosen ones” in crypto. But today we need to discuss why being a chosen one in the cryptocurrency market is actually a huge warning sign. Everything isn’t what it seems, and you need to be aware of that.

Every cycle there is a new batch of hyped cryptocurrencies which are considered “the chosen ones.” They are going to overtake Ethereum, and potentially even overtake Bitcoin. Just a few of the projects that come to mind are Onecoin, EOS, NEO, Tron, Luna, Avalanche, Near Protocol, Fantom, Solana, Polkadot, Filecoin and the list goes on and on. They will entice you by saying that this new project has the best technology in the market. It is much faster than Ethereum or Bitcoin and can process thousands, and potentially millions of TPS. They will tell you about the passive income that you can make from staking, and how the ecosystem is growing at an unbelievable speed. That everything is coming to this specific blockchain, and it will be better than anything else. There will be games, DeFi, and might even begin talking about how the tokenomics will become deflationary in the future. 

It is enough to make anyone bullish on these coins and even begin to believe the hype. And that is exactly what they want.

The cryptocurrency industry is incredibly young, and no one knows how this will turn out. The safest bets are Bitcoin and Ethereum, but even the biggest supporters of these two cryptocurrencies recognize the fact that nothing is guaranteed in this market. For that reason, there is a chance that these new “chosen coins” could become the next big thing.

However, there is one thing that these overly bullish supporters of these projects won’t tell you.

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They won’t tell you that they were very early investors in these projects. Often times they are VCs or hedge funds with significant positions and it is in their best interest to shill you these new cryptocurrency projects. Their only concern is with making money. For example, the early investors in Solana were able to buy it for only a few cents per coin. During the bull run, VCs were constantly claiming that SOL was the next big thing in crypto and that Ethereum stood no chance. Solana’s price went all the way up to over $250, which allowed these early investors to make ungodly gains. Solana isn’t the only project that has this situation. Nearly every single hyped project that has been released in the last several years has had a large majority of its tokens designated for pre-sales that were sold at a large discount to these investors.

These investors don’t have any loyalty, and more often than not, don’t even believe in the project that they are shilling. They buy in at cheap prices, shill it to retail buyers, sell for giant profits and repeat the process again with a new project.

What this all means is that the next time there is a new hyped project that is launching and being talked about by some of the biggest investors in the space. Think twice. What is their real purpose? Do they really believe in the project, or are they only wanting you to be their exit liquidity? Chances are it is the latter scenario.

When you are investing in cryptocurrency, you need to recognize that this market is still the Wild West. Greed is everywhere, and dangers are lurking all around you. If you aren’t careful, you will be taken advantage of and could lose everything. However, if you play your cards right, you could obtain unbelievable riches. The most important skills you can have in this market are being able to do your own research and having a BS meter. Where you can recognize that most people in this market have their own purpose and it isn’t for you to make money, but for them instead.

The longer you are in this market, you will learn that there will always be a new highly anticipated project. They come and go each cycle. With that said you still need to keep an open mind because one of them eventually could be a success. But more likely than not, they are just after your money.

Which hyped crypto projects do you regret investing in?

 

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