Behind the BSC Dog Coin Frenzy: Who Are Retail Investors Supporting?

Recently, the on-chain scene has been truly crazy.

Various local dogs on BSC are flying everywhere, stories of waking up free after a quick buy before sleep are spreading everywhere. Opening group chats is full of screenshots of huge profits, and the atmosphere of everyone picking up money makes people wonder if they’ve missed the whole world.

Countless people have given up on fundamentals and stopped touching secondary markets, instead focusing on the primary market, trying to find the next 100x coin. But have you ever thought—who is losing the money you make?

This market has always followed the 80/20 rule.

Those screenshots of returns are either from insiders manipulating the market or just show the profits while hiding the losses. Because project teams need these myths of sudden wealth, they need to attract retail investors wave after wave to take the other side.

Smart money has already left

While everyone is still dreaming of “so-and-so’s life,” the truly smart funds have already quietly withdrawn. They are not chasing after local dogs but have mostly converted their chips into highly liquid, high-certainty mainstream assets like BTC and ETH, leaving only a small amount to continue gambling.

When retail investors realize that all the “golden dogs” on-chain have turned into “dead dogs,” and want to chase mainstream coins, it’s often already at the end of the market cycle. Those who got rich from local dogs have already swapped their money into Bitcoin and Ethereum.

Who ended up making money? Institutions, KOLs, and scientists.

How does this game work?

Institutions team up with a bunch of KOLs to issue tokens, riding on the latest trends to gain traffic. They release hundreds of projects in a day, often all from the same group. Once one catches a hot topic, KOLs swarm in—buying early and then tweeting and calling for buy-ins.

Scientists use tools to front-run, and retail investors follow closely behind. But by the time you see it, it’s already up at least 100x. The early movers get some leftovers, while later participants are just riding the coattails of insider trading.

Don’t believe in fair launches. Ordinary people issuing a token, even if it rides a hot trend, won’t get much attention without KOLs setting the rhythm. Some retail investors might follow and make some gains, but project teams aren’t afraid of you earning once—they’re afraid you won’t keep playing. Retail investors might make some money, only to lose it all in the next project, eventually realizing that after playing with the institutions for so long, all their money has turned into BTC and ETH in someone else’s wallet, and their carefully hoarded local dogs have gone to zero.

This routine is all too familiar

A major exchange acts as the market maker, holding the most ecosystem tokens, first pumping up the market to create hype, making their ecosystem the focus; then teaming up with KOLs to create myths of local dogs getting rich, stories of turning a few thousand into millions spreading across the internet, attracting more people with dreams; KOLs praising and hyping, creating the illusion that “everyone can get rich.”

Meanwhile, those with prepared funds are selling at high prices, handing the baton smoothly to the last entrants.

So, as retail investors, if you don’t have faster tech or reliable insider info, it’s best not to get involved.

Wealth has never come from sudden riches

Those who truly achieve freedom often go through several bull and bear cycles—accumulating during volatility and holding firm at lows. Mainstream assets like BTC and ETH are the tools that can carry wealth long-term.

Going all-in on local dogs is less reliable than strategically positioning in assets with real value.

Local meme coins might make some pocket money, but the myth of tenfold or hundredfold riches belongs to only a few. Most people will end up losing everything in this game. Even if luck gets them a quick profit, if their wealth isn’t well-positioned, they will inevitably lose it back with their strength.

Currently, the wealth-creation myth on BSC has reached its climax, and the next wave of buyers may already be lining up. After this local dog craze passes, the market focus will likely return to mainstream assets. The next market cycle might not be on-chain but in Bitcoin and Ethereum.

I can’t tell everyone not to play, but I just hope you don’t get caught up and lose your mind.