Many people say that for a coin to be successful, there must be a large proportion of diamond hands. While this is true, is not the only required element.
There must also be organic selling as well. And by saying that, I specifically mean "not profit-taking sells", which is something that is absent from most rugpull projects, which just take profits and dump.
To find an example of HODLer rotation, the best and easiest example of this is Bitcoin. Our community is the first to successfully make new investors buy in and old investors to exit with a profit (or loss). The proof of that is almost all of the User IDs in the first 5 digits are now dormant.
Most exited their postions and no longer own Bitcoin. However, the price does fine even without their involvement, because newer investors arrive to buy.
This does not make it a ponzi scheme; this is simply how a publicly tradeable asset works.
Other examples of HODLer rotation can be found in Litecoin, Dogecoin, Dash, previously Namecoin, and everything that's come after it ever since.
Udi Wetheimer from Taproot Wizards has something to say about this too:
PAY ATTENTION VERY CLOSELY IM ABOUT TO TELL YOU THE BEST-KEPT SECRET IN CRYPTO
the most important ingredient for the price of any coin (or any asset really) to go exponential is HOLDER ROTATION.
which means after a big move up, old holders need to sell, and new holders need to be there to buy them out
yes for price to go up people need to SELL. heres why
contrary to popular CT folklore, no one actually buys coins to hold them forever and look at the balance. when people make investments its because theyre hoping to monetize the gains one day
CT will do anything in its power to convince you otherwise: are you telling me i can sell my chillhouse for $10,000 one day? no neo, im telling you that when youre ready, you wont have to all CT memes for basically any coin are designed to psyop you into never selling
but this is actually bearish behavior. very few people can resist the urge to sell a 10x let alone 100x or 1,000x no matter how delusional they are. therefore the only way a coin can keep going after a substantial move up is if there are enough highly-motivated new buyers to buy out a very big chunk of old holders
a communitys focus should always be on lining up new holders, not on psyoping existing ones. theres only so far most existing holders can take you
the desire to convince holders to diamond hand is understandable, as that can prolong the rally that each cohort of holders can maintain between rotations. but ultimately it is a fools errand. every cohort must eventually sell. therell always be outliers that stick around for multiple rotations but most wont do this. communities that focus on delusional diamond-handing and nothing else tend to have one explosive move and then they die and go to zero.
but the best performing assets long term have been the ones where communities were able to consistently and repeatedly perform big rotations where old holders get to sell and new enthusiastic holders buy them out. some high profile examples of this playing out in the last few years are dogecoin, cryptopunks, and solana. whenever a rotation completes successfully, an explosive move follows that breaks everyones minds, because typically they didnt notice that the rotation happened
as im looking at the crypto landscape right now im not seeing many coins that are about to complete a fresh rotation. there are some that are now beginning the long journey of holder rotation, like eth for example. that might complete within a few years. but for now the old holders clearly control the conversation
but the only asset i can find that has just COMPLETED a massive rotation is bitcoin. look around you. all the big bitcoin influencers are completely new faces. most of them in suits. some of them are robinhood kids trading options. but all of them are completely new
all the data is SCREAMING that old holders are out
it is clear as day at this point. which means you really dont have much time left
the first mindfuck is coming.
itll be way bigger than you think.
