$ETH ## The Three Major Hidden Risks Behind PROM's Recent Plunge

PROM's recent price trend has been a complete disaster, but this is no coincidence. A closer analysis reveals that several key issues are working together to push this project toward the cliff.

**The First Issue: Ambiguous Identity Causes Trouble**

Looking at PROM's white paper and promotional materials, you'll find its positioning somewhat fragmented. One moment claiming to be a high-performance Layer 2 network (focusing on ZK technology), the next promoting itself as an aggregator platform for NFTs and GameFi. This "jack of all trades" persona might still fool some in a bull market, but once the market weakens, investors start questioning—what exactly is this? This ambiguity directly translates into selling pressure.

**The Second Issue: Excessive Concentration of Power**

Data shows that over 62% of PROM tokens are concentrated in just 5 addresses. What does this mean? It indicates that the future of the entire project is actually controlled by a very small number of people. When these whales decide to reduce their holdings or cash out, the market can be crushed instantly. Retail investors' optimism is irrelevant because a single decision by large holders can change the entire market.

**The Third Issue: Technical Indicators Are Oversold**

From the candlestick charts, the short-term decline has triggered serious oversold signals. Normally, in such extreme conditions, a rebound should occur, but the problem is—no one can predict what will happen next. Once market sentiment collapses, the expectation of a technical rebound vanishes.

## What’s Next?

In the short term, a technical rebound may indeed occur, giving trapped investors a breather. But don’t hold too much hope, because there are investors waiting to escape above, and the sell-off pressure will be enormous.

The long-term is the key. Whether the PROM team can clarify its positioning, launch practical usable products, and attract new users—these will determine its fate. If it continues on the current path, it may become a forgotten "has-been project," oscillating in a low range and never returning to its former heights.