The volatility of the crypto assets market is always astonishing, even the relatively safe high market capitalization tokens cannot escape misfortune. In the bear market of the past year, many investors have personally experienced heartbreaking losses.

Once highly sought after, Solana (SOL) plummeted from a high of $250 to $8, a staggering drop of 97%. This level of loss is tantamount to a total loss for investors. The collapse of the Terra (LUNA) ecosystem shocked the entire encryption community, with its price dropping from $80 to nearly zero, evaporating almost overnight. The token FTT of the FTX exchange faced an even more dramatic fate, falling from $25 to $0.3 in just 48 hours, resulting in an astonishing $16 billion in market capitalization evaporated.

Why have these former market darlings encountered such a brutal decline? The main reasons can be summarized as follows:

First, certain projects have serious centralization risks. Both FTT and SOL are supported by strong centralized entities, and once these entities encounter problems, the Token prices can collapse rapidly.

Secondly, the underlying mechanisms of some projects have significant flaws. The algorithmic stablecoin model of LUNA is like a house of cards, easily collapsing under market pressure.

Finally, liquidity crises are especially deadly in Bear Markets. When market sentiment deteriorates, on-chain liquidations and runs can quickly deplete liquidity, making it difficult for even projects with large market capitalization to escape.

It is worth noting that even the COIN50 index composed of the top 50 crypto assets has not been spared from difficulty. Since the end of February 2023, the index has fallen below the 200-day moving average, with a total market capitalization evaporating by 41%. This phenomenon once again proves that in a bear market, there is no such thing as an absolutely safe asset.

For crypto assets investors, these cases are undoubtedly a wake-up call. Market capitalization rankings do not guarantee investment safety. In a turbulent market, the importance of risk management and capital allocation is self-evident. Investors need to stay clear-headed and carefully assess the risks of each project, rather than blindly following market capitalization rankings. Only by diversifying investments reasonably and strictly controlling risks can one survive in this uncertain market.