$FHE Many people simply attribute the current slump in alts to a lack of funds and insufficient Liquidity, but in reality, this is just the tip of the iceberg.

What really happened? The market ecology and the mentality of funds have completely changed a generation.

The era where a coin's price could be skyrocketed by just a white paper and a catchy slogan is completely over. The funds entering the market now are more rational and more selective; the old tricks no longer work.

Alts are now difficult to operate, essentially stuck on two issues:

**The first: lack of innovation, but valuations are ridiculously high.** In recent years, too many projects were just a patchwork of concepts, with no tangible products and no real application scenarios; they relied solely on storytelling to maintain their valuations. But who would still pay for such hollow narratives now?

**Second: VC raised the valuation too high in the early stages.** As soon as the project launched, it had a market value of tens of billions of dollars, leaving retail investors to take the hit. This structure doomed the market to lack sustainability, and the price could only continue to decline.

A more heartbreaking phenomenon is that capital is becoming extremely concentrated. Just like the pattern in the US stock market, top projects are siphoning off the vast majority of the money, leaving the remaining alts to become marginal existences. Project teams are well aware of this and would rather choose to live low-key than risk being crushed by a sell-off with just a slight pull.

What is the result? New coins are frequently breaking their initial values, and even the last faith has collapsed.

In this environment, is it still realistic to expect to hold on for the long term and get rich? It's basically a fantasy.

The only strategy that can survive now is three words: **short, fast, go.** Seize the opportunity to take a wave of profits and withdraw immediately; if you're one step slow, you won't get even a drop. You'll have to wait for the next round of Liquidity to truly wake up; the opportunity may return, but by then, it's not just luck that counts, but your understanding of the market.

In simple terms, the rules of the altcoin game have changed. It's no longer the era of blindly waiting for a pump, but a fast, precise, and ruthless game. Only those players who truly adapt to the new rules are qualified to remain in this market.