The hidden dangers of the unverified cryptocurrency trading competition: an in-depth discussion of investor due diligence

Unconfirmed cryptocurrency trading competition rumors are aggravating market volatility and triggering irrational investor behavior, while speculative motivation and the amplification effect of social media is even worse. Research shows that the number of retail investors relying on unproven social media signals grew by 40% from 2020 to 2023, while negative sentiment seriously affected Bitcoin’s earnings, while neutral sentiment exacerbated volatility in major cryptocurrencies. Despite risks such as raising stock prices, over 60% of investors ignored fundamentals during the DeFi hype in 2023, increasing systemic vulnerability. Experts stress that in a rumor-driven market, it is crucial to conduct due diligence and obtain verifiable data.