$BTC

Polkadot (DOT), as a popular public blockchain project in the 2020 cryptocurrency market, once sparked market frenzy with its narrative of "cross-chain interoperability." However, it became a typical case of harvesting due to token splitting and excessive speculation.

Before the project went live, the official announced the token split at a ratio of 1:100 under the pretext of "increasing token liquidity," which instantly created a buzz of market scarcity, attracting a large number of retail investors to follow suit. After the split, the price of DOT surged in the short term under capital push, once breaking through $40, and the project's valuation was inflated to hundreds of billions of dollars.

However, in reality, Polkadot's cross-chain technology has made slow progress, and core functions have yet to be realized, with the so-called "technological breakthroughs" remaining largely at the white paper level.

As market enthusiasm waned, capital began to sell off at high positions to cash out, leading to a cliff-like drop in the price, which fell to around $2, a decline of over 95%, leaving countless retail investors who bought at high prices deeply trapped.

More critically, the project team subsequently introduced a parallel chain slot auction mechanism, further manipulating market circulation by locking up a large number of DOT tokens, effectively harvesting long-term holders.