Altcoin “Blood in the Streets”

The altcoin sector is bleeding…why the worst could still be ahead of us…how to navigate this dangerous market…what our crypto experts see coming on the other side of the crash

Perhaps the most common refrain from crypto investors during a bear market goes something like…

This pain is normal. Stay the course and focus on the future. You can’t have the life-changing returns without terrifying drawdowns.

Now this advice may prove wise, potentially helping nervous investors hold their ground and earn life-changing returns…

But it can also lead to a devastating loss of your hard-earned dollars.

Since Bitcoin, the grandparent cryptocurrency, launched 12 years ago, thousands of altcoins have gone down to zero. According to Coinopsy, from the debut of bitcoin to May 24 last year, 2,047 cryptocurrencies failed. And that number is sure to be higher given the destruction in the altcoin sector in the last 12 months.

Perhaps investors were able to get some of their money out before the doors closed for these failed altcoin companies. Otherwise, those investment dollars are gone, and “stay the course and focus on the future” is the worst possible advice investors could have followed.

***Unfortunately, an altcoin does not have to hit zero to derail financial targets

Obviously, achieving your financial goals requires a return on your money.

But a refund of your money carries an unspoken implication: at the very least, you’ll get a refund. of your money.

But that is not a guarantee in the world of altcoins.

According to cryptanalyst Nihar Shah, 84% of new cryptocurrencies are “underwater” a year after launch when measured in bitcoin. In other words, for every eight out of 10 new altcoins that hit the market, their value ends up below their debut price within 12 months.

Enthusiastic investors who bought close to the debut price are not only getting a poor return, they are losing their investment savings. It goes without saying that this is not how wealth is created.

Simply put, the altcoin sector is not for the faint of heart. And as we stand today, if our crypto experts Luke Lango and Charlie Shrem are correct, most altcoin investors are at risk of losing virtually everything in the coming months. That’s because Luke and Charlie believe that 98% of altcoins could soon go to zero.

But in the same way that a forest fire destroys a forest, actually “cleansing” it for new, healthy growth, this crypto destruction can hit the “reset” button for the entire sector. The collapse will clear the way for a new period of massive growth for investors who are willing and able to take advantage of it.

Tonight at 7pm ET, Luke and Charlie will cover all of this in detail in a live urgent event called Crypto in crisis.

They will explain why the cryptocurrency sector is crashing (with potentially the worst yet to come), why the standard tropes about “staying the course” are only partially appropriate today, and also why a new era of enormous growth in the sector. once the metaphorical “blood in the streets” has run its course.

***The current “falling knife” in the crypto sector

for the newest To digest Readers, Luke is something of a prodigy. From his perfect SAT score, to an illustrious academic career at CalTech, to being the #1 analyst (out of 15,000+ investment experts) on TipRanks, Luke is no stranger to success.

In fact, he has a growing list of 10X winners under his belt. And few sectors offer greater potential for 1,000% gains than cryptocurrencies.

Meanwhile, Charlie was one of the earliest backers of bitcoin and today is considered one of the most influential people in cryptocurrencies.

has been mentioned in FortuneForbesCNN60 minutes…Ted speaks… Bloomberg… Y The Wall Street Journal… to name a few. Her story has been featured in numerous Netflix documentaries and best-selling books. And yes, he has become a bitcoin millionaire many times over, thanks to his early involvement.

Let’s jump right into how they view the current market. From your Saturday edition of ultimate crypto:

All year, cryptos have been struggling amid skyrocketing inflation, rising interest rates, slower economic expansion, and fading risk sentiments.

…We are exceptionally long-term bullish on the crypto markets. Eventually, we strongly believe that this current “crypto winter” will turn into a generational buying opportunity like November 2011, January 2015 and January 2019…

However, our job is not to try to catch the falling knives in the midst of the current destruction. Instead, it is to identify that critical inflection point where the current crypto bust cycle turns into a crypto boom cycle, and then go “all inclusive.”

In their update, Luke and Charlie review a historical market analysis they conducted on the timing of the industry’s booms and busts.

The good news is that the data suggests that the current “bust” cycle is likely to run its course later this year (if you’re a ultimate crypto investor, be sure to read his Saturday update for specifics).

The bad news is that there is a “big flush” between now and then that has the potential to kill off the impostor altcoins still littering the market today.

This is why Luke and Charlie have been urging portfolio consolidation in recent weeks, focusing only on the best of the best.

But how do you know what is the best of the best versus the coins that will go bust?

*** Separating the good, the bad and the ugly

Identifying genuine value in the altcoin sector is challenging, to say the least.

Take the recent Terra debacle.

Luna’s affiliated stablecoin, TerraUSD (UST), was supposed to be solid, pegged 1-to-1 to the dollar.

But last month it collapsed, losing its stability. The Terra blockchain ecosystem collapsed, costing investors billions.

This was supposed to be a durable and “safe” alternative currency. Note that he had the backing of many so-called “experts” in cryptography. We won’t go into the details of TerraUSD here, but you can see what sets it apart from other stablecoins that are still available at this explainer from one of our crypto experts, Ashley Cassell of new digital world.

If this type of coin became a flop, how is an investor supposed to discern the real quality? Especially if the “final dump” of the altcoin sector remains in front of us?

Well, you can reduce your risk by taking some preventative steps.

First, read the white paper.

What is vision? What is the team trying to accomplish? Do you agree with the vision? Is it clearly explained? Do you see an obvious added value?

Second, does your research point towards increased demand for the coin and/or decreased supply?

Because it can be challenging to value an altcoin, you want to have a firm understanding of the demand/supply situation for any given token.

Does this altcoin incentivize higher demand so that supply continually decreases or is less stable? Otherwise, you may find that the tokens are being issued at a faster rate than the guarantees of supply. Translation: this is not an in-demand altcoin, stay away.

Third, look closely at the team and the stakeholders.

Do key personnel have actual experience? Have they released tokens before? Do they have a respectable tech background or relevant experience? What is your real added value? Are they backed by large venture capital groups?

If the answer is “no” to these types of questions, that’s a huge red flag.

This is not an exhaustive list, but it is a start. Luke and Charlie use a much more robust analytical framework called the MultiFactor Altcoin Grading (MAG) system.

It analyzes 10 critical attributes of each altcoin, grades them on each attribute, and produces a total score.

If an altcoin scores above the “buy threshold,” Luke looks at it further for potential investment. If an altcoin scores poorly, it advises investors to stay away.

Luke has credited the MAG system for why he avoided Terra when other highly respected crypto analysts were recommending it. Terra had a great algorithm that a lot of people were excited about, but it lacked several other key attributes. He will hear more about the MAG System tonight.

*** Coming full circle, this is not the time to be bold

Of Lucas:

This is not the time to make many attempts in the cryptocurrency market.

Most cryptocurrencies on the market today will fail in the long run. That is a simple reality.

The market was filled with baseless foam. That foam needs to be removed and you should avoid it.

A useful exercise is to look at each altcoin in your portfolio. Imagine that you don’t have it yet. Then ask, “Would you buy this altcoin today, under these circumstances, with cash that you could keep safe from this carnage in the market?”

If you can’t answer “yes, absolutely”, then it is very likely that you should remove it from your portfolio.

To learn more about the current crypto market and wise action steps, I urge you to join luke and charlie tonight. Based on previous crypto winters, they believe that the current bear market is in its final innings. Unfortunately, bear markets tend to end in violent capitulation. Tonight, he will learn how to position his portfolio to avoid that, as he prepares for the next phase of growth that will become the next cryptocurrency boom.

You’ll get all those details at 7 pm ET with Luke and Charlie. Single Click here to reserve your seat.

Have a good evening,

Jeff Remsburg