The Hidden Risks Behind the Surge in Low-Cost Altcoins

As the cryptocurrency market continues to evolve, the allure of cheap altcoins has captured the attention of both novice and seasoned investors. However, beneath the surface of their seemingly attractive price points lies a complex web of risks and market dynamics that many overlook. These low-cost tokens often promise high returns, but their volatility, lack of liquidity, and susceptibility to pump-and-dump schemes make them a precarious investment. Regulatory scrutiny is also increasing, with agencies like the FSA cracking down on fraudulent projects. Understanding these hidden pitfalls is crucial for anyone considering diving into the altcoin market. This article delves into the realities behind the popularity of affordable altcoins and what investors should be wary of before committing their funds.

In Brief

• Samson Mow denounces the unit bias that drives beginners towards altcoins.
• Investors prefer a whole cheap unit over a fraction of Bitcoin.
• Mow recalculates the real value of altcoins by limiting them to 21 million units.
• He accuses projects of inflating their supply to appear cheaper.
• Bitcoin dominance could still rise thanks to this illusion.

Unit Bias Destroys Newcomers in Crypto

Samson Mow, CEO of Jan3, states that the “unit bias” is “destroying” new crypto investors. In a recent post on April 19, 2025, Mow highlights that this psychological error leads beginners to believe that a cheap altcoin is worth more than a fraction of Bitcoin.

This phenomenon, well known in behavioral economics, suggests that individuals prefer to own a whole unit even if it has less value. Result: altcoins with a high total supply appear more attractive than Bitcoin at over $84,000.

Overvalued Altcoins Without Unit Bias?

Mow proposes a revealing exercise: “What would happen if we evaluated each altcoin as if its total supply were that of Bitcoin, i.e., 21 million?” In this scenario, Ethereum would be worth $9,200, XRP would climb to $5,800, and Solana would reach $3,400. Respective increases of +278,000%, +470%, and +2,300%.

He thus accuses the majority of altcoin projects of exploiting the unit bias to mask their true valuation. “Most create a huge supply to sow confusion.”

Bitcoin Dominance Could Climb Higher

For Mow, Bitcoin’s dominance in the crypto market is far from having reached its peak. Currently at 63.69%, this metric already exceeds analysts’ forecasts who projected a ceiling of 60% by the end of 2024. In his view, this level could still increase, strengthening Bitcoin’s position against altcoins.

During periods of high dominance, money flows into Bitcoin, delaying the emergence of a new altseason.

Unit bias remains a formidable trap for novice crypto investors. By masking the true value of altcoins, it strengthens BTC’s supremacy. As this illusion fades, Bitcoin dominance could grow even more, postponing the rise of a new altcoin season.

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