It does not. People blame short term traders for price dump (it dumps because its shitcoin or crypto winter), for project failures (it fails because its shitcoin), for their own mistakes etc. In fact short term traders create volatility, which brings market makers that create liquidity, which attracts big investors that knows that asset is big enought and popular enought to enable them go in and out not in and baghold forever becuase there is not enough demand to sell. All this increased trading traffic end up as price and project value goin up. Linit trading and you end up with shitcoin with high spreads, no liquidity and no investors.