Risk Warning: Three Major Challenges to Understand Before Investing in $ERA

As a popular token in the modular Rollup track, $ERA has both technical dividends and capital backing, but investors need to be wary of the following core risks:

1. Risk of Concentrated Token Unlocking and Selling Pressure

The current circulating supply of $ERA is only 14.85%, and 50% of the tokens held by the team and investors will be unlocked in stages after 2026. Historical data shows that similar projects (such as Solana ecosystem tokens) often experience short-term price drops of 30%-50% during the unlocking period due to selling. Investors need to pay close attention to the official unlocking schedule to avoid passive holdings due to liquidity shocks.

2. Fierce Competition in the Layer2 Track

Caldera faces direct competition from similar projects such as AltLayer and Eclipse, and its technical advantages (such as the Metalayer cross-chain protocol) may be diluted by rapidly iterating opponents. If the ecological expansion is not as expected, the valuation support of $ERA will be weakened. For example, after a competitor's product went online in 2024, the TVL diversion of similar tokens caused the price to be cut in half.

3. Regulatory and Compliance Uncertainty

The regulatory policy dynamics of emerging markets such as Brazil regarding cryptocurrencies may affect the ecological development of $ERA. For example, Brazil's 2025 tax reform draft proposes to levy a "sin tax" on digital assets, which will increase the holding cost for institutions if extended to cross-border investment. In addition, the US SEC's review of the security attributes of Rollup projects may also trigger market volatility.

Summary: It is recommended that investors dynamically adjust their strategies based on technical aspects and on-chain data (such as pledge rate, unlocking progress), avoid high leverage operations, and diversify their allocations to hedge against the risk of a single asset. @Caldera Official #caldera