Today $crv was liquidated
I haven't done anything for a long time. I'm going to tell you about $Crv. If I say anything wrong, please correct me.
First of all, what exactly is the founder's mortgage?
@CurveFinance founder Michael pledged CRV worth $140 million.
Loaned about 96 million stablecoins ($crvusd mainly)
so:
Once the price of CRV falls
→The collateral crv will be liquidated,
→ There will be a short period of continuous decline
Newbies may think that the founder pledged because he had confidence in the price of CRV, and that he would lose money if he was liquidated.
Actually, it is not.
Such project owners have too many tokens and cannot sell them all on the market like retail investors.
It can be seen that the market of CRV has been very weak throughout this bull market, and now it has even fallen below the bottom of the bear market, which shows that the dog dealer has been desperately selling throughout the whole process.
But they still can’t be sold out, and if the founder sells a large number of coins directly, there will be risks both in terms of law and public opinion on the project.
So there are several ways to realize it.
① Sell to big investors over the counter (there are related news at the beginning of the bull market, you can search, these people are probably also desperately selling coins in this bull market)
② Mortgage, wait for liquidation to convert the currency into u
Why is CRV liquidated now rather than in a bear market?
My personal opinion is that the interest rate of lending in the bull market is too high and it is unbearable. Now the interest rate is close to 120%. At this rate, Michael has to pay more than 5,000 WU a year.
Plus the market seems to be coming to an end, it is better to liquidate some profits
Of course, you don’t have to think that CRV will easily spiral back to zero just because it has fallen or has been liquidated.
Curve is definitely a good project that can make long-term profits. It is one of the infrastructure DeFi on the Ethereum chain.
It started out as a stablecoin exchange, which can reduce a lot of slippage losses. If you are interested in the specific mechanism, you can search for YouTube videos.
In my opinion, it is definitely a long-lasting project like @Uniswap, rather than a Ponzi scheme. Even if it falls in the long term, it will be a long process, and it is basically impossible for it to collapse quickly like Luna.
So it is understandable that every time the market falls, there are big investors who buy at the bottom and try to rebound.
However, the question is: if the project can be profitable, is it easy to make money by buying coins?
Rebound is rebound,
Like uni, the token has long passed the initial value discovery and hype period, and does not have much market mismatch perception or long-term investment value.
It is difficult to make money with tokens of “old value projects” like $uni $crv.
Ordinary retail investors can just take a look, there is little point in participating. We should still focus on where there is capital speculation.
