Mark Mason
Well-known member
4 Lessons I Learned from the Ethereum Flash Crash
Over the weekend we had a fun market crash in cryptocurrency, precipitated by Ethereum causing a domino effect. It’s easy to watch the crash and write it off as a random act to dismiss and move on. However I think there are a few important things we can learn about the state of the cryptocurrency industry from this whole episode.
1: Markets are irrational
The biggest “no duh” of the list, I know, but it’s important to remind especially new investors of the stage we’re in at this particular moment. “Why is X coin pumping right now?” Sometimes there doesn’t have to be a reason. “Why is the market crashing?” Could be something as silly as a fake news story about a prominent developer being killed in a car accident. Or it could be because some whale just decided they wanted to sell. Real development news takes a back seat in importance to the ICO or drama du jour.
1: Markets are irrational
The biggest “no duh” of the list, I know, but it’s important to remind especially new investors of the stage we’re in at this particular moment. “Why is X coin pumping right now?” Sometimes there doesn’t have to be a reason. “Why is the market crashing?” Could be something as silly as a fake news story about a prominent developer being killed in a car accident. Or it could be because some whale just decided they wanted to sell. Real development news takes a back seat in importance to the ICO or drama du jour.
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