If the majority of supply is issued to insiders and they dump it, then most people would have to lose money. Granted I don't know the distribution but hearing supply is very centralised.
Discussion
Thats not true at all. If 5 people buy at 100 million MC and the insiders are 5 people holding onto 80%. Each buyer could sell a portion when the next buyer comes in without selling 100%. The insiders may sell nothing until another set comes in. Or they may sell a portion little by little as new money comes in. If we’re speaking theoretical without data, that’s factually inaccurate.
It's not guaranteed the majority would lose money, but it's highly likely as most speculators get in late during peak hype. It's just how these things tend to work.