How do coins with no use case value so high in the Market?

Promocodeudo

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Quote from: peerwallet on February 10, 2024, 11:31:54 AM

I have seen several of these tokens, how is this even possible?

The crypto market is all about news, when there is a news about how a particular coin is going to flood the market with good potential profit what will you except from from investors at this time, people will keep investing in such coin, the only people that might not fall for that is people with good knowledge that the cryptocurrency market is made up of speculations and this speculation has a major effect on rebranding and pushing the market, this is where manipulation comes in but at all times every crypto enthusiast or investment should be able to identify a good coin that can be managed for short-term purposes this will help to get rid of unwanted and fake coins off the market.

mich

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Well it is easy for the developers to manipulate the value of their coins. It is also the demand and the speculation and the interest in the project or coin that will make the price go up.

We must know that there is many coins with no case that are high in the market. It does not mean the coin will be worth something in the long future. Or that it is a good coin for us to hodl just for this reason. You must do you own research and be aware of those possible rug pull projects.

martinex

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The crypto currency that is fascinating and that is seen in the market is like that coins with no use case value so high in the Market there are many. Many times the value of crypto assets moves wildly like that and sometimes the option to choose that is also considered by some people as the way we transact, investing, and building wealth too, even though it is very risky because there is no development, just relying on market hype alone, but that is the consumer's choice.

GreatArkansas

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Include also other cryptocurrencies already long dead and suddenly some of them are just pumping even no more activities from the project at all, which means it's still manipulation, some whales maybe wants to make more money or some wants to exit their position, all I can see is only manipulation.

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Quote from: peerwallet on February 10, 2024, 11:31:54 AM

I have seen several of these tokens, how is this even possible?

Supply and Demand.

If there's somebody who want to buy the token for whatever reason, it will have a value. Just imagine that these coins that you are seeing right now are like Bitcoin when it was starting way back in 2008. Yes, it already has a use case at that time (base on the wallpaper), but nobody really cares at that time. Nowadays, people will invest into different coins for different reasons.

Whether it's profit, or the technology behind it or the use-case. However, many are still investing into coins that has no real use-case at all because of the fact that they believe that they can earn money when they invest on it.

NewRanger

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some people do agree with your opinion and some don't because they follow the moment in the crypto market. However, unfortunately investors have different responses, there are projects that get a market sensation and there are also those that die because of their quality. In the green market, most investors prefer to play it safe by buying fast-turning coins or top altcoins on CMC, they don't want losses in similar conditions in the past so it can help them survive or at least stabilize their investment during market pumps and dumps.

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Natsuu

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Coins without a clear purpose can still get a high market value because of people basically gambling on them. It's like a mix of hype, speculation and everyone talking about it on social media. People see a chance to make quick money and that drives up the value even if the coin doesn't really do much. But it's risky so you gotta be careful and not just jump in because everyone else is talking about it

Mpamaegbu

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Quote from: PIMPdev on February 11, 2024, 04:25:43 AM

Marketing, that's all I think. 99% of memecoins are useless, but people are buying them for some reason.

Can you list the 1% exception you made then 😏 so the rest of the community can bag them?

Joking aside, yes I agree with you that what fuels projects and gives them unexpected push is hype. Hype comes from marketing. Besides, we've to factor in the place of backers of such projects. I've come to discover that any project with big VCs backing them easily do well because the financiers won't want their investments go down the drain. Take for instance, any project with backing from BinanceLab will easily get the attraction of the crypto community and that helps push demand for it.

Quote from: cryptoknightt on February 11, 2024, 01:52:30 PM

I think traders don't see the real case of utility tokens as long as they see an opportunity then they will buy it, that's why one day there are tokens that rise very high then fall the next day.

Traders are different from investors. What causes cryptos to dump isn't the action of traders but investors. Whichever way a project goes, whether up or down, is immaterial to traders. They only need to position for the trend and profit from it. For investors, the trend must be upward for them to profit from it. Both are different.

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Quote from: peerwallet on February 10, 2024, 11:31:54 AM

I have seen several of these tokens, how is this even possible?

There are numerous reasons why a coin/token with no use case value experiences a price pump in the market. One reason I believe is a tactic to attract attention to a coin or token in the market. When a coin/token pumps, it grabs the attention of many, and instead of spending on advertising through other means, they use their funds to pump their token/coin in the market. This is just my analysis, and I'm not claiming it to be the sole reason. However, if there's advice here, it's that you shouldn't jump in just because of the hype, ensure you're confident and conduct thorough research before investing in a pumping coin with no use case value.

lalabotax

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Quote from: peerwallet on February 10, 2024, 11:31:54 AM

I have seen several of these tokens, how is this even possible?

Most of them may appear from hype coins/tokens, right? Once they are hype, they will have huge community. And this may one of the reasons why the coin is still surviving in the market, and even having high value.

But, how long they can survive? This is what questions commonly we are asking and considering. because not all of these kinds of coins are able to stay last longer in the market. Once they are left by the other project hypes, they will be left. And then, it simply ends up as usual.

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Quote from: peerwallet on February 10, 2024, 11:31:54 AM

I have seen several of these tokens, how is this even possible?

Community hype is what makes them gain value in such a short period because when a coin or token is hyped in the market, most people would want to get in and buy it so that they can profit from it as well since they hear promises and falsified developments and roadmaps which makes them feel that what if they are true and they miss out on huge profits? So they invest some money on it and when that chain continues, hundreds of thousands of people start investing and that is how those coins with no proper utility or use case gain high values in the market.

Such coins and tokens are mostly called meme coins, and because a few meme coins in the history of cryptocurrencies have managed to provide great profits to its initial investors, meme coins have become a trend and people tend to invest in every single one they hear about hoping that they might become lucky and become a millionaire through it.

cryptoknightt

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I think traders don't see the real case of utility tokens as long as they see an opportunity then they will buy it, that's why one day there are tokens that rise very high then fall the next day.

ThemFloo

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Quote from: peerwallet on February 10, 2024, 11:31:54 AM

I have seen several of these tokens, how is this even possible?

Because people usually buy and sell for a reason.
is no exception to what you are talking about.
maybe there is a positive side.
so that the coin sells well in the market.

tvplus006

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Quote from: Saisher on February 11, 2024, 10:32:14 AM

Quote from: peerwallet on February 10, 2024, 11:31:54 AM

I have seen several of these tokens, how is this even possible?

Dogecoin is just a copy of Bitcoin but it landed on the top 20 that's because of Elon Musk, who is considered to be a big influencer in the market, so it is more of hype, and on what's trending, it's easy to make money from pump and dump coins if a coin has an influencer behind him and they engaged on creating hype, it's a domino effect, people will invest on coins that are getting the attention of investors even though they employed deceptive marketing.
Investors want quick profit they are easily swayed by hype, something they cannot get from projects that will take years to complete their roadmap and perform better in the market.

Dogecoin had a huge community before Elon Musk drew attention to it. And what Elon Musk did, who was shill the coin, increased the price of Dodge, after which the price of the coin returned to its previous values. So famous personalities like Elon Musk can come and go, and the community will always stay with Doge.

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Quote from: PIMPdev on February 11, 2024, 04:25:43 AM

Marketing, that's all I think. 99% of memecoins are useless, but people are buying them for some reason.

What do you think are their reasons for buying or collecting different types of meme coins? What reason do they have to believe in useless coins as you say? This is different from me who looks for meme coins by working or participating in airdrops so as not to lose a lot of money or time if the coins just become trash in my wallet

Saisher

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Quote from: peerwallet on February 10, 2024, 11:31:54 AM

I have seen several of these tokens, how is this even possible?

Dogecoin is just a copy of Bitcoin but it landed on the top 20 that's because of Elon Musk, who is considered to be a big influencer in the market, so it is more of hype, and on what's trending, it's easy to make money from pump and dump coins if a coin has an influencer behind him and they engaged on creating hype, it's a domino effect, people will invest on coins that are getting the attention of investors even though they employed deceptive marketing.
Investors want quick profit they are easily swayed by hype, something they cannot get from projects that will take years to complete their roadmap and perform better in the market.

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Quote from: peerwallet on February 10, 2024, 11:31:54 AM

I have seen several of these tokens, how is this even possible?

Most of these coins are meme coins to be precise, they have high value because most of them are community-driven. Resulting in the hype of those coins with the perception of high returns as they are less than $1. The idea that comes into the mind of an investor is to buy these dirt cheap coins in bulk quantity. Wait for the hype to trigger in by holding them for long-term gain, resulting in a high value of these shit coins. If you want you can check the community of meme coins like Shiba and Pepe, they are always shilling their coins to get a pump in the market value, resulting in a small-term gain.

The other factor is whale manipulation which suddenly gives rise to a price hike. New investors want to ride the bandwagon and therefore invest when the price is high resulting in getting stuck into the coin unless they sell it or regain the same price point where they took a position.

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Quote from: peerwallet on February 10, 2024, 11:31:54 AM

I have seen several of these tokens, how is this even possible?

There can be one explanation for this, and that is manipulation. Whales manipulate the market of those tokens by creating a lack of supply by accumulating most of the tokens on the market. So after the whale accumulation the project price already shot up and got speculators eyes. They push the price further because there isn't much supply left in the market so even a few percent of high cash inflow pushes the price higher than expected. If you don't know how they play this game you should stay away from this token otherwise you can lose a lot of money.

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There are many factors and one very popular and effective one is about the people backing the project. Do you remember how DOGE blew up? Elon just tweeted and something that never really had value was valuable. If people who have big images decide to promote a coin, irrespective of the use of the coin, it will likely be valued. Another factor is hype. People fuel hype and the hype creates anticipation which can likely add great value to a coin or token.

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