Today, the crypto market staged a classic "collective irrationality" show. A financial product announcement from a leading exchange this afternoon caused chaos across the entire market—USD1 experienced a flash crash, while U surprisingly surged against the trend, ultimately turning into a farce. Honestly, the logic behind this move is so surreal that it’s worth deep reflection.

The event is quite straightforward: at noon, the exchange announced that a stablecoin U financial product would launch at 4 PM, with a single account limit of 20,000 units. As soon as the news broke, investors began a "mad transfer"—selling off USD1 frantically and rushing to exchange for U to secure a spot. Within a few hours, USD1 was hammered down to new lows, while U was pushed to a high level. The market was completely engulfed in an irrational emotional vortex.

The critical moment arrived. At 4 PM, everyone excitedly opened the financial interface, then… everyone was stunned. The current interest rate was clearly shown as 0.05%. What does that mean? This yield is even lower than a bank’s savings account. Investing for a year would hardly earn enough for a cup of milk tea. Those who sold USD1 in a rush for this tiny profit are probably now regretting it to the point of gut-wrenching. Comparing losses and gains, it’s an extreme irony.

As someone who has been in this industry for years, I must say: this move is a textbook case of "market sentiment hijacking rational judgment." It committed three fatal errors. Beginners must remember these, and seasoned players should take this as a warning.

The first mistake: blindly trusting "platform promotions" and completely ignoring the essence of returns. The current stablecoin financial products in crypto are no longer in their wild-growth phase. Before launching any product, the market has already done various calculations and set expectations. Hearing the words "new product" and following the trend without thinking is the most basic investment mistake.

The second mistake: being completely hijacked by "FOMO" (Fear Of Missing Out). Seeing others rush in, one jumps in without a second thought. This unconscious herd behavior is precisely the breeding ground for irrational market fluctuations. USD1 had no fundamental change from the start; the market’s plunge was purely manipulated. Those following the trend and selling are just "carrying the water" for others’ cash-out plans.

The third mistake: lacking any concept of "cost-benefit." Even if 0.05% interest isn’t a joke, one must do the math: what risks and opportunity costs are involved to earn this tiny return? The slippage loss from selling USD1, the cost of rebuilding the position, missing other opportunities—add them all up, and that tiny interest is long gone.

The most ironic part of this incident is that it perfectly exemplifies a stubborn flaw in the crypto market: participants often don’t make decisions based on fundamentals and logic but are swept away by market sentiment. A single announcement, a hot topic, or a wave of public opinion can wipe out rationality entirely.

My simple advice to everyone: next time you see a "new financial product"