I wouldn't say that it's a problem, it's just hype and if you are that kind of investors that are easily swayed by this hype then something is wrong with you. You really need to investigate first and not just blindly believed on hype, and most likely i would say that it could be just 1% of this altcoins that will survived because they are just hype. And there are groups that are going to take advantage of it, like going for a pump and dump scheme which is not healthy. However, there are still a lot of investors, specially newbies who feel for this trap and then lose money along the way. Hopefully for those who have lose money on this hype coins, they should have learn their lessons so that they will become smarter the next time.
New generation having some serious problems while they run behind hype which always give them problems mostly are never trying to understand things which helps them and keep them on right side in last few years we have too many big loses just because of this hype with mostly fail to understand.
In crypto investing most important thing is search and having work on project where you are going to invest but peoples due to hype never try to check all basic things here too many influencers and peoples those are having good communities are also helping them for gaining profit. AI is also working but still we are not well aware about right and wrong use of I have to agreed just 1% is having solid project and others are like crap for taking profit in short term.