Easy earnings and promises of returns lure users into curious thoughts.
A Reddit user raised a controversial issue by mentioning his desire to invest $1,000 in 500 cryptocurrencies he has never heard of, $2 in each of them.
In the comments, both confident and pessimistic people talked about their experiences. Some claim that it’s likely to work for meme coins because silly coins need a stupid investment. Others cite the problem of the high transaction fees of exchanges.
There is no doubt that most of these coins will disappear faster than they arrive. But even a tiny chance of getting any project above 10,000 times generates interest.
Strategy or Gambling? As the number of cryptos doubles in 2021, it is difficult to keep up with opportunities, especially the so-called “gems,” small projects that can explode as the community gets to know them.
With the hope of investing in any future gem, the Reddit user u/Smokinpeanut mentioned his desire to invest $2 in 500 coins he doesn’t know about. He would have made over a million if he had done this with Shiba a year ago.
“Say I’ve got $1000 to blow, and I’m already investing in the bigger coins; why not take a chance and put $2 into 500 random altcoins that are no ones talking about?”
Despite this, some users warned that the exchange fees would be too high to carry on this diversification. Some considered this investment as gambling.
If you use centralized exchanges, this strategy would be even more difficult, as most of them have a minimum trading value with a minimum trade must be $5, while on Binance, the minimum transaction is $10.
Bots are already performing such functions. They are programmed to invest $1 in each new currency listed on Pancakeswap, CoinMarketcap, or CoinGecko. As reported by a Bitcointalk user, some bots are already working this way.
“Bots are watching PancakeSwap events to put $1 in each new currency whose liquidity is added. I’ve seen this in practice when I deployed a test coin and put in $10 of liquidity.”
It is difficult for a case like Shiba Inu to repeat itself, but the crypto market is full of stupefaction. Finally, it is also important to note that the Bitcoin bulls significantly impact the altcoins market. If the Bitcoin trend is undefined or starts falling, such an experiment may not be good.