Dario
Thu Jul 18 2024
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5 answers
1562
Why are small Crypto projects more volatile?
Could you elaborate on why smaller cryptocurrency projects tend to exhibit higher volatility compared to larger, more established ones? Is it due to their limited liquidity, making it easier for larger investors or traders to manipulate prices? Or does it stem from their relatively newer and unproven track records, which cause investors to have greater doubts about their long-term sustainability? Furthermore, could the lack of robust regulatory oversight in the crypto space also contribute to this volatility, especially for smaller projects? I'm curious to understand the key factors that drive this phenomenon.
