Behavioral Analysis of the Market: The Speculation and Psychological Drivers Behind the Surge of Malego Coin

From a behavioral economics perspective, the rapid rise of Malego Coin is essentially a manifestation of short-term speculative overheating. In discussions within the Gate community, many users exhibit strong enthusiasm for this surge, with some even mockingly referring to the coin with vulgar names, indicating that market attention is more focused on the price increase itself rather than the underlying value logic.

Three psychological mechanisms are noteworthy behind this phenomenon: the herd amplification effect, conformity psychology, and short-term profit-seeking desires. In a community environment where information spreads quickly, when some participants post about price increases or share trading screenshots, it easily attracts the attention of other investors, creating a cycle of “price surge → attention → capital inflow” that amplifies itself. In this pattern, the price is not supported by fundamentals but driven by self-reinforcing market behavior.

Another key psychological factor is the FOMO (Fear of Missing Out) effect. When an asset experiences extreme gains in a short period, some investors rush into the market out of fear of missing profits. This behavior is more evident in high-risk, low-liquidity coins, where even a small amount of capital can cause significant price movements. FOMO is not based on project valuation but on short-term profit expectations, which also explains why many surges are followed by substantial retracements.

Additionally, in the community context, teasing the coin’s name also reflects a diminished risk awareness and an intensified speculative atmosphere. When the coin’s name is mockingly used as a “cussing” symbol, it often indicates that participants are more focused on short-term emotions and trending topics rather than in-depth research of the project’s logic. This atmosphere is frequently observed in other rapid surges as well.

Therefore, from a behavioral perspective, the massive increase of Malego Coin is more a reflection of short-term emotional-driven and speculative behavior in the market rather than a stable value discovery process. Understanding this helps analyze the risks and potential subsequent market structures behind similar phenomena.