Litecoin is one of the first open-source altcoins based on the original Bitcoin code. It was initially a strong competitor to the first cryptocurrency. However, as the cryptocurrency market expanded, Litecoin’s popularity gradually declined.
Hype as a crypto market phenomenon
The word “hype” was originally just youth slang, but today it has become so popular that everyone has heard of it at least once. This happens when a word has more than one meaning.
By “hype” they mean high-risk investments (abbreviation High Yield Investment Program), as well as the second meaning is hype, making noise around an event, often artificial for the purpose of profit. As you can see, both terms have a similar meaning, and in the world of cryptocurrencies they take place.
Cryptocurrency projects are also investments that may or may not be profitable. In any case, marketers are working on projects, making a fuss around them to attract investors and popularise the new product, and of course, to raise the cost of startup tokens as a result.
What does "hype" mean? Conduct aggressive PR. You can also “hype” – get popularity due to hype. Everything related to fashion, trends is also hype.
HYPE in investments
High Yield Investment Program literally translates as “high-risk profitable investment project”. But, despite the promises, a small group of people receive income here, deceiving investors.
The first hype scheme in history was a Ponzi scheme. Most people are familiar with this phenomenon under the phrase “financial pyramid”. In 1920, Charles Ponzi made a lot of noise by promising people crazy interest rates, and soon the scheme collapsed. Studies show that HYPEs are mostly popular in post-Soviet countries due to the lack of financial literacy among the population.
There have been enough cases in the blockchain industry where projects have worked the same way. Usually they promise a payback of hundreds of times, and indeed, the first investors receive them. This is where the profit payment ends, because there is no product as such, and the project turns into a scam.
For hype, the main thing is to draw up a beautiful white paper, draw a beautiful website and a wallet, then beautifully give a long song and dance about great prospects. After the required amount of money is collected, the project is closed under any pretext, for example, an incorrect assessment of the network's potential.
Read also: How to choose a cryptocurrency for purchase: signs of prospects
