"Who Is More Foolish" Soars 1075x in 30 Minutes After Listing: The Frenzied Coin Market

Cryptocurrency 'Arowana Token' Surges 1075x Within 31 Minutes of Listing

Elon Musk, co-founder and CEO of Tesla, is riding the mascot of 'Dogecoin,' the Shiba Inu, as he heads to space. Photo by Online Community

[Asia Economy Reporter Heo Midam] The number of people in their 20s and 30s jumping into cryptocurrency investment hoping for a windfall is increasing. In particular, concerns are rising as the proportion of investments in altcoins (cryptocurrencies other than Bitcoin), which have relatively high volatility among cryptocurrencies, is growing.

Unlike Bitcoin, which is relatively stable in price among cryptocurrencies, altcoins have high volatility, making the risk of investment losses due to sharp price fluctuations significant. Experts have warned that the "coin craze" could cause substantial losses to investors, referring to the "greater fool theory" regarding the rapid rise in cryptocurrency prices.

According to the cryptocurrency exchange Bithumb on the 21st, Arowana Token (ARW), which was listed on the 20th, started trading at 50 won at 2:30 PM and surged to 53,800 won by 3:01 PM. This means it skyrocketed 1,075 times (1,075,000%) in about 30 minutes after listing. However, after repeated fluctuations, it fell to 21,000 won as of 7:30 AM on the 22nd.

ARW is a cryptocurrency issued by Arowana Tech, a company based in Singapore, which aims to create a new gold trading environment. Before its listing, HancomWITH, a blockchain-specialized company affiliated with Hancom Group, attracted attention by investing in Arowana Tech.

Meanwhile, Dogecoin, whose price surged after being mentioned several times by Elon Musk, CEO of Tesla, is also experiencing repeated sharp declines.

Recently, individual investors in the U.S. set April 20 as "Doge Day" to collectively accumulate Dogecoin to drive up its price, but the price plummeted on Doge Day instead. Dogecoin is a cryptocurrency created by an American developer as a hobby and does not aim for any special functionality.

Elon Musk, CEO of Tesla, posted on Twitter. Photo by Twitter capture.

As the "coin craze" spreads, the 20s and 30s generation, who were enthusiastic about the stock market, are also moving into the cryptocurrency market. In particular, altcoins like Dogecoin often experience price changes of hundreds of percent within a few days without clear reasons, allowing those with good timing to make a large sum of money in a short period.

As a result, a considerable number of people in their 20s and 30s have jumped into cryptocurrency investment hoping for a windfall. According to the status of investors received from the four major cryptocurrency exchanges?Bithumb, Upbit, Korbit, and Coinone?through the Financial Services Commission by Rep. Kwon Eunhee of the People's Party, the number of new subscribers in the first quarter of this year reached 2,495,289.

Among them, those in their 20s accounted for 32.7% (816,039 people), the largest share, followed by those in their 30s at 30.8% (768,775 people). This means that 6 out of 10 people who newly entered cryptocurrency investment in the first quarter of this year were in their 20s and 30s.

However, many altcoins have not been technically verified and often experience sharp price fluctuations without any particular positive news, making it highly likely for investors to lose their funds. This is why there are criticisms that it is more of a gambling mentality than rational investment.

In online communities related to cryptocurrency investment, netizens expressed reactions such as, "I was shocked when Dogecoin I bought plummeted. Also, since the price keeps fluctuating so much, it seems hard to make a profit unless you constantly watch the coin window," "Coins are so volatile that the psychological burden is huge. Stocks, which are more predictable, seem better," and "My acquaintances said coins are easy money, so I invested without knowing anything and almost lost a lot of money."

Experts pointed out that the "coin craze" could cause significant damage to investors. British investment expert David Kimberly said in an interview with the U.S. CNBC broadcast, "The 'greater fool theory,' where investors blindly follow market trends, is appearing in cryptocurrency investment." The "greater fool theory" refers to the phenomenon where any price is justified by the belief that a later investor will buy the asset at a higher price.

He warned, "If everyone behaves this way, the bubble will inevitably burst," adding, "The problem is that it is impossible to predict when that will happen."

This content was produced with the assistance of AI translation services.