The market of cryptocurrency is facing a tough time. What started the year with a bang, has now been hearing the hue and cry of the new investors. The crash has spread like a wildfire roping in giants like Bitcoin, Ethereum, Ripple and Tron to name a few. What has stood out is the fact, that the new investors who had joined in the surf at the highest of the tides are the ones to crash and burn at this moment.
HODLGang: An Elite Group of Investors
The new investors had purchased their currency at the peak of it value. The numbers that traders were flaunting as per profits was enough to make any fence sitter or naysayer to convert into an investor. They expected to hitch a ride to the moon. What they failed to realise was that, behind the long awaited high was an entire community of HODLGang. They had invested/mined/traded into digital assets so far back as 2010 after Satoshi Nakamoto first released the white paper on this technology. It was their patience which was paying them back.
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They made a neat sum in profit and even now they continue to make a profit simply because the new blood is being purged. They are buying right now as they are sure that the only way for the crypto to go is up. It is this patience that the new investors lack. This is a cycle. Every high is followed by a low. This low is obviously going to change into a high. The HODLGang believes it as a mantra.
HODLGang is not merely a hashtag trend. It is a feeling of belonging to this group that supports and guides each other when the going gets tough. The new investor on the other hand is focused solely on the profit margin and are hence panicking when the downward spiral has hit them.
FUD: A Trend
China and South Korea play an equally big hand in this downward slope. They have changed policies in regards to cryptocurrency at an alarming speed. This inconsistency has resulted in FUD ( Fear, Unrest And Doubt) market. They are big players. While Neo continues to rise, there is a big section of investors that still doubt these government’s intentions.
In fact, there are many countries whose governments are changing their stance on cryptocurrency. Russia, India are amongst the big names that are working their way towards opening doors for new investors in this sector. JIOCoin, a crypto that has been declared by corporate giant Reliance Inc, has given a reason to rejoice. We are keeping our eyes peeled for this one. You should too.
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Disclaimer: The writer does not claim to have any influence on the market trends and requests this be read as a stand alone piece.