The flat trading from Bitcoin, and the substantial rises in the price of a number of altcoins over the past month and a half have people muttering the words ‘altcoin season’ again. The notion that many of the other cryptocurrency projects out there, other than Bitcoin, will suddenly kick into life and show impressive gains is always exciting.
However, there has not been an altcoin season since early 2018, after the price of Bitcoin skyrocketed, and then fell back sharply as excited investors looked elsewhere for quick and easy gain in speculative trading.
Altcoin seasons have been predicated on finding niche coins and projects before they explode in price and getting in to make the biggest profit — before quickly leaving soon after. This pump and dump mentality is not exactly a good thing.
Altcoins are usually based around other cryptocurrency projects trying to solve something other than how to make people rich as quickly as possible from investing. But, when DOGE suddenly started pumping because of pure speculation and greed, it reminded us that not all altcoins have much worth.
DOGE is proud of its lack of goals and aim — it was created as a meme-based crypto. So when TikTokers started buying it up in the hopes of making big cash based on nothing but a viral trend, warning bells should have been rung.
It is concerning that people are still considering altcoin season to be another chance at a quick speculative buck, but some also believe that it won’t be — such as Binance CEO Changpeng Zhao.
Back the builders
Zhao’s point is a good one, he talks about backing altcoin projects that have actually been building since that first free for all of financing in 2018. There has been long enough for companies that have been around to show deliverables in the cryptocurrency space and that they are building for the future of the ecosystem.
More than enough projects emerged with big ideas and fancy whitepapers, but the vast majority of them did not deliver anything and faded away. There will always be a turn over, and with new innovations comes new projects, but the next altcoins season should be about backing the builders.
The current altcoin boom has seen more than DOGE pumping. There has been a lot of action in the DeFi space as this entire ecosystem starts to take off — but there are also concerns that DeFi might be too heavily pushed by greed.
However, a project like Cardano has also been growing well in the last few weeks as it heads to a major upgrade called Shelly. Cardano is one such project that has a few years to produce the goods and has been progressing along with its roadmap and as such has benefited from 85 percent gains in ADA in the last 10 days.
Finding use cases
The altcoin market is supposed to be a space that has built upon what Bitocin brought to the table as the first blockchain based project. Bitcoin was created with money in mind and has become a speculative investment — and that is fine. However, the other projects who are working on new generations of blockchain, like Ethereu, Cardano, NEO and other programmable blockchains should not be used as an investment.
It is of course a tough road to walk as some of these projects need the hype and speculation to boost their value to accomplish their goals, but for altcoin season to come around, and be a positive force, there needs to be belief — not just greed.