It is a real shame that projects with great potential don't always seem to get the financial valuation that they deserve. This is absolutely the case when we take a look at the price of Cub on Leo Finance's new DeFi platform Cub Finance.
According to CoinGecko, Cub is down around 74% from its peak, but for those of us who were involved early, we saw the price of Cub hang around $10 during its first few days in existence; this would be over 90% down from its ATH... Why?
I am a firm believer in the quality of the project and like the roadmap going forward, but I am really curious as to why prices have taken such as massive dip, even before yesterdays crash.
DeFi Hype
So with DeFi, it seems to me that the earlier you get on board the better your return will be. Not only is the price going up from increased recognition in the markets, but also the APR % for liquidity pools in the beginning is astronomical. I remember when the BUSD-Cub pool was bringing in around 20000% APR. Of course this was not sustainable, and I think that it really did a number on early investors psychologically; it did for myself at least.
When you see that you are bringing in that insane percentage and then it dips down to a 'measly' 250%, it is easy to lose perspective and forget that 250% APR destroys your banks yield on your savings account of around .02% per year.
The steady price decrease reflects this psychological barrier where people are looking for unrealistic returns to continue. The reality of the situation is that these yields just can't last or the tokens themselves would become worthless as there would be too many of them. Cub Finance is looking out for investors by having the APR rates decrease over time as well as including burn mechanisms in nearly all of their products going forward.
Why Stick With Cub?
I onboarded numerous friends onto Cub because I really think that the concepts they are chasing after are world changing ones. To be able to swap from ERC-20 to BEP-20 on the Leo Bridge instantly will be saving a ton of time and fees for investors going forward. If we are going to end up living in a world where different cryptocurrencies are going to be exchanged and spent depending on where you are in the world, we will need easy ways to swap tokens without involving middlemen (i.e. centralized exchanges). The Leo Bridge is laying the groundwork for that and I really think the concept is world changing in nature.
At a price of around 90 cents, Cub is absolutely not reflecting the amount of utility it brings to the table; this is like getting a brand new TV on black Friday for the cost of a McDonald's sandwich. In my opinion this price is too tempting to pass up on (NFA). With the launch of Kingdoms in the next few days, Cub will be gaining another mechanism of utility to provide value to the token and to the entire ecosystem it operates on. I can't say for certain whether Kingdoms will be a smashing success, but I do love the concept and if it is done correctly, Cub will continue solidifying itself as the bridge between numerous blockchains and yield farming platforms.
It is a gamble that I am willing to take as the rewards are tangibly understood and world changing.
@mariosfame gif once again, I love it
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My name is Rob and I am a college student doing my best to get involved in the crypto world. I have enjoyed blogging thus far and thank you for reading my article! Give me a follow and let’s build the community together through consistent engagement.