Based on my experience since I entered the crypto world, altcoins can be roughly divided into four levels.

First-class projects: while working and providing liquidity, with successful applications as valuation support, working and boosting the market form a positive spiral, continuously strengthening the narrative, leading to an increasing number of diamond hands believing in the value investment, and all diamond hands can receive continuous positive feedback, typical examples include BNB, SOL, and ETH. Even in the case of ETH's lackluster performance in this round, there are still a large number of loyal supporters firmly believing in a strong outbreak in the later stage, just because ETH has experienced too rapid gains in the previous two bull markets, and early holders have received very substantial returns.
Second-tier projects: only do market-making without doing anything, typical examples include last round's Dogecoin, Shitcoin, and some memes in this round, as well as many altcoins such as Quantum and Antshares in 2017 that increased by tens or even hundreds of times, either without any so-called project team to build, or even with project founders who won't talk to you about anything and just focus on pumping the price. People who advocate value investment find it hard to believe in their value, and either dare not participate or exit early after taking a small profit.
Third-rate projects: they don't do anything or provide liquidity, they go live just to dump. Although these projects are garbage, the damage is limited because they don't continue to build and give the feeling that there is still a big move coming. If everyone loses money, it's time to cut losses. There's no reason to hold on like a diamond hand. The benefit is that it only kills people without hurting their hearts. It will cut you more or less, that's its specialty. After the project team dumps, they go to enjoy yachts and models, at least giving you some relief without delaying you from playing the next one.
Fourth-tier projects: Only doing work and not making a market. This kind of project ranks the worst, because consistently doing work easily gives participants the impression of 'value coins' and conforms to the logic of people who are accustomed to value investing. It is more likely to trap people for a long time, like boiling a frog in warm water, delaying the opportunity cost of the entire bull market, and increasing the sunk cost for diamond hands. If you leave, you feel like you've been doing work all the time. What if it takes off after you leave? If you stay, the token price always falls more than it rises, and when the overall market is good, it doesn't rise much or even falls slightly. When the overall market is bad, it falls even more. This kind of project not only kills people but also kills spirits, typical examples are the former EOS and Bytom. One is the Ethereum killer and the other is the leading domestic public chain. These two projects trapped a lot of people who had faith in BM and the hero. However, EOS at least had a strong momentum before promoting its work. Later, it announced that it would do work, set up nodes, and held various roadshows after the three waves were over, only to find out that it wasn't working.