To be honest, every time I see retail investors cursing after a project crashes, I feel both heartbroken and helpless. This kind of dumping has actually been recorded on-chain for a long time, yet most people choose to ignore it.

I have been doing on-chain analysis for so many years, and I can really say this: learning to understand on-chain data can help you avoid at least 80% of the pitfalls in the crypto market.

Let's first talk about a few hard indicators. The first one is large address concentrated dumping. Recently, there was a project where a capital party holding hundreds of millions of dollars in tokens crazily dumped tens of millions of tokens within three days, cashing out tens of millions. As a result, the coin price directly halved by 30%. This is like someone shouting "It's going to collapse!" from the rooftop—yet you still want to rush in; if not you, then who will get dumped?

The second red flag: highly centralized token distribution. In some projects, 96% of the tokens are concentrated in a few wallets, and the pricing power is completely controlled. I have seen too many such schemes; they make you dream of getting rich when they pump, and when they dump, they leave you no escape route. So remember one principle - a truly decentralized project must first have "decentralized token distribution"; otherwise, it is just an old scam in a new bottle.

The third signal best illustrates the problem: long-term holders are fleeing. It's not just a single project; veteran players across the entire market are dumping. Even those Bitcoin whales who bought in seven or eight years ago are frantically selling off. What does this indicate? Smart money has lost confidence in the current market. At this time, any crash of small coins is not an isolated incident, but rather an inevitable result of the overall trend.

Many people always think they can perfectly buy the dip, but they don't understand one thing: whales and institutions saw this data before you did. To truly learn how to identify risks from on-chain signals, the key is to understand these tricks.