Take a look before you divest! This new currency ENA is, to put it bluntly, a stable currency USDE. The annualized return is touted to be quite high, 35%, but in fact it is based on CDP arbitrage and some basis trading tricks.
As for the investors, it looks quite bluffing, with big names like Binance, Ouyi, and Kraken all getting involved. The founder, Guy Young, came from Wall Street, and has been around Morgan Stanley, Goldman Sachs, and Citadel for 20 years. He sounds pretty cool, but who knows if he is bragging?
So where does this 35% annualized return come from? Hey, to put it bluntly, it is just playing with contracts, shorting Ethereum to earn some funding rates, and then using spot Ethereum to make some liquidity pledges. Maybe you can make some money in the bull market. How much can you get for it? The circulation is 15 billion, and the market value is 1.5 billion for one dime, and 3 billion for two cents. It looks very cheap, but it is not a good product!
The Dai issuance of similar stablecoin projects such as Maker is only 5 billion, and the USDE issuance of ENA is 1.5 billion. The market value of Maker is 4 billion US dollars, and the ENA is only 1.5 billion US dollars, which is 0.1u. But the market is so volatile, who knows how high it will be? Below 0.2 or 0.3u, try your luck to see if you can get it. It is hard to say whether the market will give you a chance when the coin is issued. Now the over-the-counter price has been hyped up to 0.6u, with a market value of 9 billion. You are a fool to buy at this price. The risk is too high and the profit margin is pitifully small.
Don’t panic if the opening price is too high. Wait for the correction before entering. Just like Etherfi, you may be able to make some profit by jumping high and then entering again. There are still several long-term hype points for this project. For example, whether Binance will adopt USDE, although the chance is pitifully small, but what if? It's possible to go to 1u. Is there any RWA for U.S. bonds to hype up the valuation and increase it by more than 30%? These are all big pictures, but there is quite a lot of room for imagination. But when the bear market comes, the Ethereum contract funding rate becomes negative, the arbitrage ability is greatly reduced, and the income will have to cry for father and mother. Which currency will not fall in the bear market?
In general, the growth potential of this coin is just so-so. Whether you can make money depends on whether the opening price is low. It depends on luck to grab the opening price. Don't worry, it's all fate!
