2019 Cryptocurrency Market Review: The Joys and Sorrows of Investors

2019 was a challenging year for many Crypto Assets investors. Many found that the gains they had previously made through luck had been completely depleted by the end of the year. So, where did the funds flow in the Crypto Assets market in 2019? Let's review some of the main hotspots together.

Early Wealth Creation Myth: First Exchange Issuance (IEO)

In early 2019, a well-known trading platform launched a token issuance platform, marking the beginning of IEOs. The first IEO project sold out in just 13 minutes, sparking a market frenzy. Subsequently, other major exchanges followed suit, igniting the IEO battle.

However, IEO projects generally show a trend of "sharp rise at opening, followed by a steep decline". According to statistics, most IEO projects begin to decline after reaching their price peak, with 86% of projects experiencing a drop of over 50%, and nearly one-third of projects seeing a decline as high as 80%. This has shattered the wealth dreams of many investors, and the IEO model has gradually lost its luster.

The Rise and Fall of Exchange Platform Coins

With the surge of IEOs, the platform coins of major exchanges have also experienced a brief period of prosperity. Some mainstream platform coins achieved an increase of over 150% in the first quarter of 2019, while certain small exchange platform coins even saw astonishing increases of over 600%.

However, the good times didn't last long. As the enthusiasm for IEOs waned, market conditions softened, and some speculative projects emerged, exchange platform coins fell by an average of 22% in the third quarter. Once regarded as a "safe haven", the platform coins ultimately could not escape the test of the market.

The Rise and Fall of Model Coins

The "Resonance" model coin represented by VDS once became the market focus. This model created astonishing returns in the short term by being linked to the price of Bitcoin, even driving the rise of some second-tier exchanges.

However, just as all pattern coins have their life cycle, the prosperity of VDS did not last long. When large holders began to sell off to cash out, the price collapsed rapidly, causing many investors to suffer heavy losses. This once again confirms the investment principle of "high risk, high return."

Lessons from the Ponzi Scheme

2019 also witnessed the collapse of several large-scale Ponzi schemes. A certain project promised high returns of 10% to 30% per month, attracting a large number of investments, with a total funding scale reaching 30 billion yuan. Another project raised 5.2 billion yuan in six months, and its token once ranked among the top ten by market value. However, these seemingly beautiful promises ultimately ended in collapse, causing huge losses for investors.

Risks of Contract Trading

The contract trading market became another focus in 2019. The high risks brought by high leverage caused many investors to suffer heavy losses, and the frequent occurrence of large liquidation events constantly reminded market participants of the dangers of contract trading.

Conclusion

Looking back at the Crypto Assets market in 2019, we can see that whether it was IEOs, platform coins, model coins, or Ponzi schemes, they all went through a process of frenzy to cooling down. This reminds us of the importance of rationality and value investment in Crypto Assets investment. Looking forward to 2020, I hope investors can learn from the lessons and make wiser investment decisions.