After watching this, I thought about the question of the understanding of the cryptocurrency world, "Who was the earliest blockchain project?" Surprisingly, no one got it right‼️
I have realized: what the cryptocurrency world lacks the least is nonsense⚠️
To clarify: the earliest blockchain project is $XRP , born in 2004.
The concept of digital currency was born as early as 1982, proposed by the father of cryptocurrency, David Chaum.
In 2004, Ryan Fugger launched RipplePay, a centralized credit accounting system.
In 2008, Satoshi Nakamoto published the Bitcoin white paper, creating the first "decentralized ledger," initiating the concepts of mining flow and decentralized currency.
BTC is the starting point of cryptocurrency, XRP is the starting point of blockchain🙄🙄
Back to the topic: Why did $AAVE suddenly drop?
AAVE is a lending protocol, focusing on staking and reinvestment.
To make a basic analogy: Cryptocurrency is a complete world, $BNB like CEX is a country, while chains like ETH are allied nations.
Therefore, AAVE is the largest bank in the cryptocurrency world🏦
Under normal circumstances, banks are subject to national regulation and have a CEO (founder) and a vice president (co-founder).
Thus, projects like AAVE, which focus on payments like XRP, are centralized projects.
However… due to conflicts of interest among the CEO, vice president, and other shareholders, profit distribution became uneven.
In a fit of anger, the CEO decided to hand over the bank's ownership to the depositors (those who hold AAVE).
But even if AAVE is a centralized project, it cannot be decided solely by the CEO, so a vote is required.
This is the reason for AAVE's plummet: the AAVE team decided to propose transferring all rights of AAVE to the community, thus AAVE holders 🟰 decision-makers‼️
In the long run, AAVE transferring power to the community will definitely be beneficial.
However, as a mature project, changing ownership will naturally cause fluctuations, and the original team, having lost control over AAVE, will naturally sell off AAVE.
A more straightforward way to say this is: fluctuation wash and early profit locking💰
The current drop in AAVE is caused by the selling pressure from the second-largest holder of AAVE.
Fluctuation is only temporary; in the long run, AAVE will definitely rise.
After all, there is nothing more profitable than lending‼️
