2019 Crypto Assets Market Review: Investors' Joys and Sorrows

The year 2019 was a challenging year for many Crypto Assets investors. When reflecting on their portfolios, many lamented: "The money made by luck has all been lost through skill!" This phrase captures the bittersweet experiences of many investors. So, where did investors' funds flow in 2019? Let us review the market changes of that year together.

The Initial Wealth Creation Myth: The First Exchange Issued ( IEO )

In early 2019, a well-known trading platform launched a token issuance platform, marking the beginning of the IEO model. The first IEO project was sold out in 13 minutes, sparking a market frenzy. Subsequently, other major trading platforms followed suit, with one platform's first IEO project completing three rounds of sales in just 19 seconds. This explosive scene led many investors to mistakenly believe that a bull market was imminent.

However, rapid increases are often accompanied by sharp declines. Data shows that most IEO projects experience significant drops after reaching price peaks. Among them, 86% of the projects saw declines of over 50%, and nearly one-third of the projects experienced declines of up to 80%, nearly approaching zero. This extreme volatility has shattered the wealth dreams of many investors, and the IEO model has gradually lost its appeal.

Platform Coin: The Barometer of the Market

With the rise of the IEO model, coupled with mechanisms such as buyback and burn, trading mining, and dividends, major trading platforms' platform coins experienced a brief period of prosperity at the beginning of 2019. In the first quarter, the increase in major platform coins generally exceeded 150%, with some even reaching around 800%.

However, the good times didn't last long. With the decline in the popularity of IEOs, the market conditions cooling down, and the emergence of various speculative projects, platform coins fell by an average of 22% in the third quarter. Investors hoping to profit by heavily investing in platform coins had to face the harsh reality: platform coins can bring substantial returns but may also lead to significant losses.

Mode Coin: A Fleeting Myth of Wealth Creation

"Did you resonate today?" This phrase once became a popular saying in the Crypto Assets circle. The "resonance" model represented by a certain token quickly swept the market, its popularity rivaling that of a trading mining model from a certain platform the previous year. This model, by being linked to the price of Bitcoin, created astonishing returns in a short period of time, with some tokens even surging 40 times within two months, briefly entering the top ten in global Crypto Assets market capitalization.

However, all pattern coins have their lifecycle, and the collapse often comes faster than people expect. When large holders start to sell off in large quantities to cash out, ordinary investors often end up with nothing. This high-risk Ponzi scheme ultimately ends in a dismal conclusion.

Fund Pool: The Most Dangerous Investment Trap

2019 witnessed several large-scale Ponzi scheme collapses. Among them, the most notable was a certain project, which reportedly involved 120,000 Bitcoins, 8 million Ethereums, and various other Crypto Assets, totaling as much as 30 billion dollars. This project promised returns of 10% to 30% per month, attracting a large number of investors. However, this unrealistic high return ultimately proved to be a scam, leading to significant losses for many people.

Another striking case is a certain blockchain project, whose token price skyrocketed over 100 times in a short period, briefly entering the top ten by market cap. Through high interest rates, generous profit sharing, and tight control, the project raised 5.2 billion in six months. However, when the bubble burst, investors almost instantly lost all their investments.

Futures Contracts: High-Risk Investment Venue

Compared to the spot market, the Crypto Assets futures contract market is undoubtedly a higher-risk investment area. Frequent news of large liquidations, often resulting in losses of billions, highlights the extreme volatility of this market. In this uncertain market, even if considerable returns are achieved in the short term, it is possible to lose even more in the next moment. Therefore, for most investors, it is crucial to approach futures contract trading with caution.

Conclusion

Reflecting on 2019, the importance of rationality and value investing has become increasingly prominent, whether in profit or loss. As qualified investors, one must always maintain a calm and prudent attitude. I hope that 2020 will bring better returns for every investor.