Today, while browsing reader feedback and online information, I learned that the price of CRV has experienced a sharp drop.
The trigger for the plunge was the forced liquidation of CRV pledged by the project founder on multiple lending platforms, which triggered a sell-off and caused a sharp drop in prices. I remember this was the second time the project founder caused market panic due to similar operations.
Last time, the founder also pledged a large amount of CRV on the lending platform to obtain stablecoins, which raised concerns about the stability of CRV. At that time, there was even a prediction that if CRV was liquidated in large quantities, it might affect the stability of projects such as AAVE, which also pledged a large amount of CRV. Fortunately, at a critical moment, a well-known investor bought a large amount of CRV at a price of about $0.5, avoiding the crisis of chain liquidation.
But this time, CRV was not so lucky. These two incidents point to one problem: the project founders seem to lack confidence in their own project tokens. The future development prospects of such a project are worrying.
I have always believed that to evaluate whether a project has long-term potential, we must first look at the project team. From this perspective, Curve's current situation is worrying. As for me personally, after learning the full story, I quickly sold my CRV.
As for the future price trend of CRV, although the DeFi sector may benefit in the bull market, the specific increase of CRV is difficult to predict. More importantly for me, these two events made me lose confidence in this project, so I chose to stay away.
Regarding the previous investment decision, I reflected that I made a mistake on CRV: when the founder first caused market concerns by pledging CRV, I should have sold it decisively. The reason why I hesitated at the time was because I considered the important position of CRV in the DeFi ecosystem. But now it seems that decisions should still be made based on the value of the project itself.
Some people ask whether the current CRV price is worth buying. My point of view is: only when I am really optimistic about a project will I consider whether its price is appropriate. For projects that I am not optimistic about, I will not buy them even if the price is low.
For readers who have already invested heavily in CRV, I suggest taking decisive measures to reduce risks. If it were me, I would choose to close the position. Of course, this may require some courage. If you can't make up your mind, at least you can convert part of your position into more stable assets such as Bitcoin or Ethereum.
Finally, I want to say: in investment, we cannot predict and avoid all accidents and risks, but we can reduce risks by controlling positions, etc. I hope everyone will always be cautious and rational in the investment process.
In the cryptocurrency circle, if you don’t know how to operate and are still confused, welcome to follow and check out the introduction! This round of bull market will see more 100x coins, and I will announce the next 10x potential coin later! It’s better to grasp it than to guess blindly!
