ALLO goes live with spot trading, immediately turning into a disaster, catching many off guard.

It opened at $2.29 and plummeted to $0.62, a drop of over 70%. The promised airdrop benefits instantly turned into an "air raid harvest." Many participants lost everything, and this kind of scenario is not the first time it has played out in the crypto space.

This crash exposed several typical traps that all investors should be wary of:

**Overvaluation Trap**
ALLO's initial fully diluted valuation soared to $1.7 billion, but the actual circulating supply was tiny. This high FDV with low circulation is essentially a game of musical chairs.

**Stringent Conditions for Promises**
The airdrop rules set multiple thresholds, leaving many people ineligible or receiving only a tiny amount. Community sentiment quickly turned negative.

**Concentrated Selling Pressure**
Users who received the airdrop had near-zero costs and sold immediately after listing. Retail investors were caught off guard, and the price was halved again and again.

**Token Distribution Imbalance**
The project team and early investors took the lion's share, leaving only a small portion for the community. This distribution pattern guaranteed that the price would peak at launch.

Some practical advice:
Don't be blinded by high returns; first, understand the project's fundamentals and tokenomics.
Stay away from projects that rely solely on airdrops to hype without real products backing them.
FOMO is your biggest enemy—staying calm is more important than anything else.

Remember: the market never lacks opportunities; what’s missing are those who survive to seize them.