Whenever the market is booming, a large influx of new retail investors will pour in. They see others making money and think they can easily jump on the bandwagon. But what happens? Once the market adjusts or the sentiment shifts, these people are usually the first to be washed out.

You might say it's just a coincidence, but that's not quite right—observations show that retail investors in the crypto space have an alarmingly high loss rate. But this isn't a matter of luck; it's determined by the market ecosystem, human weaknesses, and the way information flows.

Let's start with the most painful point: information asymmetry.

Many people think the crypto world is very democratic, claiming decentralization, with on-chain data that can be checked in real-time—anyone can see it. But think carefully, this is actually an illusion. Web3 sources of information are diverse, and the channels of dissemination are various—Weibo, Twitter, Telegram groups, WeChat groups, Discord... It seems like there are many options, but in reality, the information is even more chaotic.

Imagine this: although stock markets are regulated by the government and have authoritative media, they at least have a relatively standardized information disclosure system. In the crypto world? There are project promotions, institutional layouts, manipulative tactics by whales, and a jumble of useless information and rumors. Retail investors searching through this mess are like trying to find signals in noise—most end up with false signals.

Social media and various groups may seem transparent, but they are precisely the places where information manipulation is most severe. No one is overseeing the quality; the information varies in reliability, and whoever has the loudest voice wins. That's why you're always a step behind—by the time you hear a story about a coin in a group, it might already be something others have long since laid out.