Author: hitesh.eth, Crypto KOL

Compiled by: Felix, PANews

Cryptocurrency is about belief; it is the purest financial tool in history, designed to draw hope from people's hearts and convert it into liquidity. The volatility of cryptocurrency does not stem from utility but from narrative, manipulation, and attention. This is not a market; it is a psychological war. Most people are completely unaware that they are being hunted in this war.

Price Discovery

Regardless of the narrative, cryptocurrencies follow the same price discovery cycle. At the beginning of the cycle, in the 0 to 1 phase, hype dominates, actual adoption is nearly zero, and prices soar due to emotions. Communities form around an illusory future. The volume of the narrative drowns out reality. Then comes the brutal correction, eliminating the weak holders and exposing those who bought in merely due to "commitment." The turning point occurs during these deep corrections. Projects with no actual demand quietly fade away. They stop tweeting, cease development, and gradually disappear, with market liquidity flowing elsewhere. But a few tokens survive and enter the 1 to 10 phase. In this stage, hype decreases, and adoption begins to rise. These tokens will experience slow and tedious growth until real demand rekindles a second wave of trust. The second wave of trust will drive a long and strong bull market. Only then can these tokens cross the cycle, but most tokens never make it this far.

Hidden Truths

In the future, most projects will not need tokens. Once private companies can directly tokenize equity and raise liquidity on-chain, a large number of cryptocurrencies will become useless. Certain aspects of DePIN and DeFi are the only categories that truly need tokens, as these tokens can guide participation and coordination among parties in the project. Everything else is a financing method disguised as innovation. The existence of most tokens is because founders want to quickly raise funds, but that era is coming to an end, and better financing methods are on the horizon, along with regulation. However, meme coins and junk tokens will not disappear. They will proliferate because gambling is human nature. The difference is that the boundaries will soon become clear. When you are gambling, you can no longer use long-term investment as an excuse. You must make a choice. Either you are gambling, or you are investing. Nowadays, everyone pretends to be an investor, even those chasing memes and hype believe they are.

Psychological Traps

Cryptocurrency is a carefully designed, promise-laden string of data intended to manipulate human behavior. Supply unlocking mechanisms are designed to control hope. Vesting schedules gradually inject confidence into the market. Incentives are not just economic. They are emotional traps. The real product is not the token. The real product is belief. The narrative is aimed at reactive thinking, that part of the self driven by fear, anxiety, guilt, hunger, and desire. People are not buying tokens. They are buying the opportunity to escape their current reality. This is why tokens spread faster than logic. Because belief spreads faster than truth. This is the reason for the existence of "pumps." Venture capitalists enter early, market makers manipulate price trends, exchanges arrange listing times, opinion leaders amplify greed, whales quietly enter, and retail investors appear at the end of the chain as exit liquidity. This is not a conspiracy; it is a process, and this is the system.

The Demise of Tokens

Speculation drives token growth, not utility. Every token is fighting in the same war for attention. If a token cannot retain attention, it will perish. Attention precedes adoption. Attention precedes profit. Attention precedes product use. Most teams do not understand this; they worship price trends rather than user growth. They launch incentives to fake attraction, but once users start caring more about token prices than the product itself, the game is over. Incentives should be a bridge to adoption, not a substitute for real demand. When a project loses control over its token dynamics and becomes a prisoner of its own price chart, the mission collapses. Founders no longer commit to building but start to cope. The vision fades. Tokens become a curse. For those projects that can succeed even without tokens, it will become a "deathbed."

Liquidity Exit

If you do not know from whom you bought the tokens, you are the "greater fool." Token price discovery is a coordinated game controlled by insiders. Venture capitalists, exchanges, market makers, syndicates, whales, and KOLs collaborate, tacitly. When retail investors see a token heating up, insiders have already positioned themselves, waiting for liquidity. The seed stage is the time to create the greatest wealth, but retail investors can never participate. Projects raise funds at low valuations but appear at billions in fully diluted valuations upon listing.

Retail investors mistakenly believe they are entering early, but in reality, they are late. They provide exit opportunities for those who entered at lower levels. The only way to survive in this game is to interpret market dynamics ahead of time, entering before KOLs promote it in succession, and positioning before liquidity incentives kick in. If you buy after a YouTube influencer talks about it, it's over. If you do not do your own research, you are not investing; you are borrowing someone else's belief. Borrowed belief will always be liquidated.

The Future Divide

Cryptocurrency is splitting into two worlds: regulated cryptocurrency and anarchy in cryptocurrency. One will be controlled by the government, with compliant infrastructure, approved tokens, and comprehensive monitoring. The other will be raw, brutal, and free, where privacy-focused chains will survive, the true spirit of decentralization will endure, and real builders will take root. Tokens were initially a countercultural movement, but that culture has died. Cryptocurrency has betrayed its mission, becoming Wall Street on the blockchain. But a cleansing is coming; demand for false tokens will perish, purposeless projects will vanish, and narratives without substance will disappear.

Only tokens anchored to actual adoption, real cash flow, or genuine purpose will survive; the rest will disappear. You need to figure out why you are here. Because tokens are like mirrors, exposing your greed, impatience, and fantasies. Most come for freedom but get trapped by speculation; most come for wealth but lose themselves in greed; most come for truth but become addicted to lies. This market will not save you; narratives will not save you; only self-discipline and vigilance can. Survival is simple: learn the rules, act before the crowd, and never become exit liquidity. Know yourself, and then enter the battle.

Conclusion

Cryptocurrency will not reward followers; it will only reward those who can see through the illusions. The masses always act slowly, always chase hype, and always become someone else's liquidity. Do not blindly follow the crowd; have your own trading logic, advantages, and patience. If you understand this game, you will not fear it; instead, you will leverage it.

The great cleansing will not destroy you; it will help you find your position. The road ahead will not be easy; the market will test your belief, timing, patience, emotional control, and your ability to hold onto the truth when the masses are drowned in noise. Now is not the time to pray for a bull market; it is the time to hold firm in belief. Only one question remains to be answered. When the next cycle begins, will you enter early, or will you miss the opportunity again?

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