I heard that you were talking about crypto money while you were taking coffee from my favorite bagel shop at noon. I am very excited because I do not seem strange when I talk about crypto money with the new investors entering the market thanks to the media. But this excitement, man, "did you hear that Ripple thing? People say Ripple might be the new Bitcoin, "he said.
The market itself was a little stretched. Many old coins were booming with massive supply, and all of this was a bit confusing. The total market volume of the crypto money market has increased by several hundred billion in just a few weeks and the number of unknown coins has increased in addition to projects that have been on the market for a long time. Something was definitely wrong.
"Cheap Coin"
Brian Kelly was part of CNBC's Fast Money program on January 5 and showed customers how to get Ripple's XRP coin from the well-known crypto money exchange Poloniex.
Investors in the US who are not very familiar with crypto money outside Coinbase are likely to put $ 10 on an edge and have been surprised to see a crypto money with a price below $ 100.
New individual investors saw the price of XRP as an opportunity to find the "new Bitcoin", and many even set XRP as "favorite coaches". However, XRP must have a market volume of more than $ 1 quadrillion to get closer to Bitcoin's price.
At the time of the program, the XRP price was $ 2.57, and even though the highest bid was Korea at the time, there was an increase in the price during the Fast Money program. As individual investors continued to raise money, Ripple continued to fall beneath $ 2, and eventually saw $ 1 in gold with the near-term decline.
It was not the only "cheap coin" Ripple that showed such upward trends and then dropped again. Redd Coin, Verge and even parody coins like Dentacoin have shown such moves.
The psychology that lies behind this increase is probably: why do I get a bit of Bitcoin (investor suspected of knowing it) when I get all the "cheap" coins? Which one looks more attractive for someone new to the crypto money market? 0.54132 Bitcoin or 5,000 XRP?
High Supply
I apologize for breaking down your dreams if you believe that XRP has the chance to beat the $ 10K limit like Bitcoin. But even assuming the XRP is $ 10 (which many people imagine), assuming that it has all the supply , it must have a market volume of about $ 1 trillion . This value is now almost twice the market share of the total crypto money market ($ 555 billion).
If the total crypto money market has a market volume of several trillion dollars, the XRP is likely to have a price of $ 10, but for now it is a bit too far to imagine that such an asset will have such a high price in the near future.
This is not to dismiss Ripple's technology, but to make an observation about the possible price range of a particular entity. All of these rules apply to a lot of crypt money with high supply. You do not have a good technology behind you.
Take Sia, for example, which offers a centerless cloud storage solution. During the low price frenzy, Sia's price jumped from $ 0.03 to $ 0.10 in just a few days. Sia has been in the market for a long time, but there is only a market volume of $ 1 billion. This increase was only "cheap coin" and the supply measures were completely ignored. Again, this is not to dismiss Sia's technology - it's even a very good technology. But Sia did not deserve that price, and the mobility on the market stemmed entirely from new investors.
The bad side was that they did not promise much in terms of technology but were still leaping for the same reason. Take Dentacoin. Is the global dental sector really going to adopt an Ethereum token? Collect some money, buy a few clinics, claim that they are independent partners, and get things done. Well, do the ICO, get your own crypto money, but have a market volume of $ 2 billion on January 8, and you do not have the right thing to support it? Something is wrong here.
Let's look at the supply and price point measures: there is a maximum of Dentacoin supply of eight trillion, there are 325 billion Dentacons in circulation and there is a price just under one cent. This is the formula for attracting new investors.
But one of the reasons for the rise of these gray pigeons - that's what I call them - was the famous cyber security expert John McAfee. He gave a new investor to some coins in order to say "the day's coin".
McAfee, Master Manipulator
On December 13, John McAfee announced his love for privacy. Later, he talked about a 'privacy cone', previously known as DogeCoin Dark, now Verge (XVG). The tweeter is a co McAfee at $ 0.03 from $ 3.00 'a jump of , $ 300 $ 30,000 a splashing said that it is easier.
A week after this McAfee tweet, Verge jumped and broke the record, from $ 0.013 to $ 0.30. Thus, in a week more than 2 thousand 300'den showed an increase. The koin, which has almost no function, only saw a market volume of more than $ 4.4 billion due to the price and the introduction of a famous person.
McAfee noticed the increase that Verge had experienced and the power he had when he saw his share. Later on, a new series called "day coin" started. McAfee made a presentation of this very high-volume, very low-priced coin, and new investors following McAfee poured money into those coins.
The first coin chosen by McAfee on December 21th was fork from Monero and later Electronone, which was ICO edited. To tell the truth, Electronium did not have a proper success. Soon after that, Electron Eum experienced an increase of 60% before falling below the day's lowest level. The electron price was below $ 0.10 and there were 6 billion Electronomes in the circulation.
McAfee continued this series with different coins: Burst (1.8 billion in circulation), Digibyte (9.7 billion in circulation), ReddCoin (28.7 billion in circulation) and even DogeCoin (112.8 billion in circulation). In fact, DogeCoin chose the "weekly concert" on January 8th. Some have flipped through this series of McAfee and "pump and dump" over McAfee's selected coins.
DogeCoin's founder, Jackson Palmer , was not even the right technologist, but a ridiculous asset with a high market volume. But it is not so difficult to convince new investors that an asset is going to fly in the future because they are deceived by low prices and ignore the supply amount.
Commodity Exchange Stopped
There are positive things about what McAfee does. For example, new investors now know how to get the subcoons, where to get the subcoins. But the stock exchanges were not ready to cope with such gigantic traffic, and as a result many stock markets temporarily stopped receiving new records.
Bitfinex was the first stock market to stop buying new users in December, but the stock market reopened its subscription a few days ago. On December 14, Bittrex stopped receiving new registrations due to "excessive increase" in the registrations. On 5 January, Binance temporarily stopped new records and talked about "the extreme increase in popularity".
One day later, on January 6th even Cryptopia had to close its doors. But a few days ago this stock market opened its doors again.
There was a black market immediately after the stock market accounts were sold. Since the new registration is not accepted, the investors have begun to purchase the membership through the stock exchanges that they can not become members through the members who are members of that stock exchange. The market for approved accounts varies from a few hundred dollars to several thousand dollars. As soon as Binance was aware of the situation, the investors who were considering buying the membership immediately informed about some security risks.
These temporary stops are a sign of how many new investors have entered the market. Those investors who flocked to the market did not expect a fall like the week we were in the market.
Tuesday Massacre
During the past week, the whole crypto money market was beaten. Some of them are linked to news from South Korea and to Asia in general. Others are attributed to the closing of the first round of futures and some manipulations by Wall Street.
Since the total crypto money market volume has fallen by 50%, the life statement has begun to appear slowly and slowly.
Regardless of the reason for the fall, new investors must be shaken as they are not yet accustomed to the volatility of the crypto money market. We hope that those who live have shown that miracles should not be expected from high-powered, inadequate technologists, and hopefully they will migrate over time (except DogeCoin, it may remain). It's time to make a radical adjustment to the market.