Recently, a Meme coin on the BSC chain became popular, first skyrocketing and attracting countless followers, then crashing hard, leaving many trapped. This cycle kept repeating. What exactly happened?

In simple terms, these tokens are purely speculative works with no technological implementation, no real application, and no governance mechanism. Price fluctuations are entirely driven by market sentiment and capital games. Sharp rises and falls are not bugs but features.

Let's start with the founders. Some people liquidated within 20 seconds after deploying the token, making only about $4,000 in profit — a typical pump-and-dump tactic. While not necessarily market manipulation in later stages, the large holdings accumulated by early whales are the real ticking time bombs, ready to dump at any moment.

Liquidity issues are even more critical. The market cap looks decent, but the actual buy-sell depth is terrible. Once someone places a large sell order, the price drops straight down, making normal liquidity almost impossible. During such times, panic spreads, turning into a collective slaughter, bloodbath scenario.

Investors also have problems. During the surge, the community kept shouting "tenfold, hundredfold," with many entering the market like sleepwalkers, completely unaware of the risks. When the price suddenly crashes, everyone panics and rushes to sell. Chasing highs, getting trapped, and cutting losses form a vicious cycle.

There is also the hidden risk of information asymmetry. The Meme coin market lacks effective regulation, with false news, pump-and-dump schemes, and manipulation tactics everywhere. Retail investors are easily led astray and ultimately suffer huge losses.

Ultimately, the wild swings of these tokens fundamentally reflect the lack of value support and regulatory oversight in the crypto market. Investing requires a clear head—don't let FOMO control you. Proper risk management is the key to survival.