Chive Harvesting

"Chive Harvesting" is a metaphorical term widely used in the cryptocurrency community, originating from Chinese market culture, which vividly describes the practice where experienced investors or project teams profit from inexperienced investors (referred to as "chives") through various tactics. In the crypto market, due to high volatility and severe information asymmetry, novice investors are often easily induced to make irrational investment decisions, thereby getting "harvested." This phenomenon is particularly common during cryptocurrency bubbles, hype cycles, and periods of extreme market volatility.

Chive harvesting typically takes multiple forms, including creating false positive news to pump prices before dumping large quantities (commonly known as "pump and dump"), raising funds through tokens with little actual value before disappearing with the money ("rug pull"), or manipulating prices using information advantages. This phenomenon persists largely due to relatively loose regulation in crypto markets, lack of transaction transparency, and vast disparities in professional knowledge among market participants.

In terms of market behavior, chive harvesting often accompanies distinct price patterns and trading volume anomalies. The typical "harvesting" process usually goes through three phases: accumulation, pump, and dump. During accumulation, major capital quietly buys in; the pump phase comes with exaggerated positive publicity; and in the final dump phase, when enough novices have been attracted to enter the market, the major capital begins to sell at high prices. This behavior not only harms ordinary investors but also seriously affects healthy market development.

The risks and challenges brought by chive harvesting are multifaceted. First, it severely damages market trust, deterring new investors; second, it diverts funds from truly valuable projects to speculative assets; finally, it increases the likelihood of regulatory intervention, potentially bringing stricter industry restrictions. For individual investors, the key to avoiding being "harvested" lies in strengthening investment education, learning fundamental analysis, avoiding blind following, and maintaining a rational investment mindset.

Although "chive harvesting" carries negative connotations, it reminds us that the cryptocurrency market is still in its early stages of development, with imperfect market mechanisms and investor protection systems. Understanding this phenomenon helps investors enhance risk awareness while serving as a wake-up call for market participants, indicating the industry's need for greater transparency, more refined self-regulatory mechanisms, and a more robust regulatory framework to promote the long-term healthy development of the crypto economy.