Bagholder

A "bagholder" in the context of cryptocurrency refers to an investor who holds onto a significant amount of a particular cryptocurrency, often facing substantial losses due to a decline in its value. The term implies that the investor is left "holding the bag" of depreciating assets.

Examples and Cases:

• Suppose an investor purchased a large quantity of a speculative altcoin during a bull market, hoping for significant returns. However, the market sentiment changed, and the altcoin's value plummeted due to various factors like regulatory concerns or lack of adoption. The investor, unable to sell without incurring significant losses, becomes a bagholder.
• During a pump-and-dump scheme, traders artificially inflate the price of a cryptocurrency to attract buyers. Those who buy at the peak of the pump, unaware of the scheme or expecting further gains, may end up holding the bag when the price crashes after the dump phase.

In summary, a bagholder is someone left with depreciating assets, often unable to sell them without experiencing substantial losses.