In the cryptocurrency industry, most people are not independently trading coins, but influenced by KOLs and communities to follow the trend of faith, be manipulated by KOLs, and driven by community emotions. Ask yourself, if you don't look at any KOLs or communities, would you still be trading coins? This is precisely why there are very few people making money in the cryptocurrency industry and many people losing money. 1、 Most people in the cryptocurrency industry do not think independently, but rather rely on information The vast majority of retail investors do not possess independent research capabilities. They: Not able to read on chain data; Not familiar with the token economy model; Unable to determine the authenticity of the message; I have no concept of macro cycles. So they can only rely on information sources—— Whoever sends messages quickly, has a loud voice, and packaging authority, they will trust them. That's why the influence of KOLs and communities far outweighs technical analysis itself. let me put it another way: The rise and fall of the cryptocurrency market is not determined by logic, but by narrative and crowd psychology. 2、 The role of KOLs and communities: creating emotions and amplifying trends The core functions of KOLs are: Create emotions (excitement, greed, fear); Guiding direction (recommended sections, recommended projects); Shaping faith (having a long-term positive outlook on a certain type of asset). The function of a community is: Repeatedly amplifying KOL viewpoints; Create a conformist atmosphere ("everyone is buying"); Reject dissenting voices. Ultimately forming a closed loop: KOL Speeches → Community Communication → Retail Investors Enter → Coin Price Rise → KOL Verification of "Authority" → New Round of Faith Cycle. This is actually a market structure driven by public opinion, rather than a rational market. 3、 Why can this model persist for a long time The information in the cryptocurrency circle is extremely asymmetric: ordinary people have no channel to know the truth about the project. Short speculative cycle, great temptation: every round of market trend reignites the illusion of sudden wealth. KOLs themselves are stakeholders: project parties, exchanges, and capital provide them with resources. Community reinforces collective illusion: Once lonely retail investors join a group, they will give up independent judgment. This leads to: Most of the 'cognition' in the cryptocurrency industry is created, Only a few people from the source of information make real money. In summary: The cryptocurrency market is not a technical market, but an 'emotional trading market'. Retail investors are not really speculating on currency, but following public opinion; A true master does not create emotions, but analyzes them.