Have you ever wondered why some coins surge today without any apparent reason, only to plummet tomorrow and you don't react in time?

This question has been asked across various exchanges recently. Some people chase Meme coins from the bottom to the top, only to see their investment cut in half overnight. Others watch the rally with excitement, but when they enter the market, they buy at a high point. Where exactly is the problem?

Let me break down a few key points:

**First, Meme coins fundamentally lack backing**

On the BSC chain, these types of tokens have no technological innovation, no real application, and no governance system—they rely solely on a meme or a story to support them. Price fluctuations are entirely driven by popularity and capital game theory. Such coins experiencing rapid rises and falls are not surprising; they are an inevitable phenomenon.

**Second, what does a founder’s quick liquidation mean?**

Some token founders sell off their holdings within 20 seconds of deployment, earning only around $4,000. While they may not be the main manipulators later on, this reflects that these projects operate on a quick-in, quick-out logic from the start. However, the real whales holding the majority of tokens are early investors who possess large amounts of tokens and can dump at any time, making it impossible for ordinary investors to defend against such moves.

**Third, liquidity is the most deadly trap**

Meme coins may seem to have a sizable market cap, but their actual trading depth is terrible. Want to sell a large order? The price can be hammered down significantly. Want to exit at a good price? That’s nearly impossible. When a sharp decline occurs, everyone starts panic selling, liquidity dries up further, and the price free-falls.

**Fourth, FOMO (Fear of Missing Out) acts as an accelerant**

Every time there's a surge, the community starts hyping stories of "tenfold, hundredfold" gains, attracting inexperienced investors to follow the trend. When the dump happens, these investors panic and sell in a rush. The cycle of chasing highs → getting trapped → selling off repeats endlessly.

**Fifth, many people are blind to information warfare**

The Meme coin market is almost unregulated, with false information flying everywhere. Pumping and dumping are commonplace. Investors often have asymmetric information, and many are easily fooled.

**So, how should we view these coins?**

Ultimately, the rapid rise and fall of Meme coins is a perfect storm of lacking intrinsic value, no regulation, and investors blindly chasing high prices. While founder liquidation isn't the biggest issue, it does highlight how risky these tokens are.

If you truly want to trade cryptocurrencies, the most important thing is to stay rational—don't be fooled by stories, stay away from hype-driven assets without real backing, and prioritize risk management above all else.