Recently came across a "high-yield target," and the doubling return curve is indeed eye-catching, but the 7000U entry threshold directly keeps most retail investors out. Many people private message me asking: With such a high threshold, is it really about screening for quality players, or is there another trick?



As someone who has been in this market for many years, I have to tell you the truth.

**High threshold ≠ high returns, you need to understand the underlying logic**

First, setting high thresholds in legitimate projects is usually for risk control. For example, some institutional-grade products use high minimum investments to filter for investors with strong risk resistance. This is similar to the logic in Hong Kong's new regulations, where 100% risk provisioning is required for crypto assets — in plain terms, it's about setting a safety buffer. But the problem is, many ordinary projects also follow suit and set high thresholds, with the actual goal being just one thing: quick money grabbing. They have no real risk management capability.

Second, don’t be fooled by the phrase "high threshold = high returns." Assets with low unit prices can still double, like Cardano and Polygon, which have achieved multiple doubling cycles thanks to solid technology and ecosystem development. Projects that constantly claim only high thresholds can lead to high returns are often using exaggerated promises to hide the fact that their core business is just empty speculation.

Finally, and most dangerously — hidden costs. The initial investment is only superficial; lock-up periods, redemption fees, and other hidden clauses are the real money-consuming beasts. Even more insidious is information asymmetry — institutions may use special channels to exit early, leaving retail investors with only the risk of being the bagholders. This routine is no different from the wild swings of crypto reserve stocks.
ADA9.21%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
0/400
No comments
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)