The Predictability Of DeFi
It always begins with euphoria and a massive pump. As the yields proceed to drop, investors begin dumping their holdings on DEXs, as they move on in search of the next “opportunity”. This is the rinse and repeat cycle of typical DeFi investors. They are making money and you can’t hold it against them. Successful investing requires that you formulate a strategy and then go on to repeat it as many times as possible. The same can be said of “breakout” traders, they are like lions hidden in the grass. As soon as the prey is within reach, they pounce. A successful hunt secures a good profit, enabling investors to continue their accumulation and strategic play.
An Approach I Ignored With CUB
There are a few projects that I have decided to hold and avoid trying to maximize every opportunity. CUB, LEO, and PolyCUB are amongst the group. I was in CUB from day one and have never sold a single token at any point. The same approach will be applied to PolyCUB. I understand very well how these dynamics operate and yet I am refraining. There are quite a number of motivations that encourage my approach, making it an easier decision to make. I was involved with DeFi before it was even termed as such and yet I am choosing the “foolish approach”.
I will be opting to avoid traditional “DeFi wisdom” in order to support these projects by simply holding long-term. My holdings won’t make much difference but if more and more adopt a long-term strategy, we may be more effective.
Emissions Make This Difficult
Constant emissions within the DeFi realm make long-term price appreciation extremely difficult to attain. This is why many DeFi projects simply devalue over time and basically become worthless. Even CAKE, the big gun of DeFi is currently down 86% from its recent high. Yes, this is pretty much the theme across the altcoin market as a whole but DeFi tokens are also at war against inflation, making it very difficult to increase in market cap value. This is why auto-compounding vaults such as Kingdoms are great for the industry. They encourage hodlers to remain hodlers.
Profits are automatically reinvested and so the temptation to withdraw rewards is less, as a compounding balance is way more powerful in its effect. At the end of the day, a successful DeFi project has one very important ingredient and that is a developing and continuous use case.
This Is What Separates The Truly Successful
Come to think of it, CAKE doesn’t have much use case at all, although I have recently seen talk of future updates that are set to improve the use case and utility of the token. This one aspect has the power to change the typical DeFi structure. “Lock up the token, earn more tokens” is a pretty entry-level idea. Adventurous and groundbreaking utility ideas can go a long way to supporting the price of the applicable DeFi token. I guess I am betting on the CUB team to redefine the DeFi experience because apart from that, there is little one can do to see a DeFi token go on to break new highs.
All Or Nothing
I guess I am making a bit of an all-or-nothing bet on CUB and PolyCUB. In many ways, this is my approach to everything connected or associated with Hive. Most people only have one strategic approach to portfolio growth. I tend to disagree, as with multiple ideas and risk appetites comes a better chance of one paying off really well. If you have one approach and it fails, so do you! Looking back on my own journey, there have been a couple of really good calls that were all different in their defining criteria. I am glad I chose all of them and would be rather unhappy had I only chosen one!
There is a lot of planning and development going on in the lion’s den. Leofinance and CUB are definitely something special. It will however be a journey, albeit an exciting journey! Do you have the patience and stamina to join the pride?