A screenshot of getting liquidated fills the entire screen, the time frozen at last night deep in the night, with the caption: "Now saying not to short? That Privacy Coin has surged to $700!" Upon seeing this message, I felt a mix of emotions—someone has once again burned their hands in the flames of the privacy track.

The story dates back to last autumn. At that time, there were rumors in the market that certain cross-border regulatory policies might tighten, and sensitive funds began to seek new liquidity paths. During that period, anyone with a bit of a nose for on-chain data could sense that the on-chain activity of Privacy Coins was quietly rising. Someone in a small circle warned at that time: "This wave is not retail investors playing; it's organized capital laying out positions in advance, so don't chase blindly."

At that time, many people were still observing, thinking it was an overinterpretation. As a result, just two weeks later, the policy direction in a certain area became clear, and the on-chain transaction volume of that coin surged directly by 5 times - money always moves faster than news, and by the time you understand it, the first wave of dividends has already been consumed.

The real turning point is at a certain price pullback node. At that time, the coin dropped from a high point to around $140, and market sentiment instantly shifted from panic to greed, with voices everywhere shouting "buy the dip". However, upon calm observation, one can find that the chip structure has not yet stabilized, and large addresses are still continuously accumulating. Entering the market at this time is equivalent to becoming a liquidity provider for the institutions.

A friend who runs a mining farm made a bold decision at the time—to repurpose several thousand old mining machines to mine this coin. He jokingly said at the time: "If I judge incorrectly, these machines could end up being a burden." But the final result proved that those who positioned themselves early benefited from the entire wave of the market moving from 140 to 700, while those who chased high prices and tried shorting were basically washed out in this rebound.

Privacy Coin is, to put it bluntly, a business that operates on the edge. It doesn't rise based on technical narratives, but is driven by specific demands – the stricter the regulations, the stronger the demand; when the wind shifts, it immediately plummets. So if you want to play in this field, you have to keep an eye on policy trends, monitor on-chain data, and seize the right timing; all three are indispensable. The worst thing is to watch others make money and get envious, rushing in without a plan, and in the end, not even understanding how you lost.

The market will never wait for you to be ready. When everyone is shouting "this time is different," it is often the moment of highest risk.