Renowned Bitcoin trader Crypto Feras has issued a strong warning against investing in old alternative cryptocurrencies (altcoins). In a recent tweet, he stated that 99.99% of altcoins fail to endure beyond a single market cycle.
Feras pointed out the poor sustainability of old altcoins compared to the resilience of Bitcoin. He explained that in the first cycle, project teams, VCs, and influential investors accumulate altcoins only to later sell them to retail investors.
Per Feras, this first cycle seeds the eventual downfall of most altcoins. He characterized the second cycle as merely an “echo bounce” driven by inexperienced retail traders. His description highlights the widespread notion that the majority of altcoins cannot compete with Bitcoin long-term.
The trader’s sober warning underscores the inherent volatility and risks associated with older altcoins in the crypto market. It cautions retail investors to be wary while considering investments in previously hyped altcoins from past bull cycles.
A report last year found over 12,000 cryptocurrencies have ceased meaningful trading activity and remain dormant. The analysis further confirms the poor survival rate of altcoins beyond a cycle or two of hype.
Feras’ advice serves as an important reminder for crypto investors to conduct thorough due diligence before investing in altcoin projects, particularly older ones with unproven track records. Bitcoin remains the most battle-tested store of value in the space.
