Bucking The Trend
DeFi-based projects often tend to suffer rather significant losses during bear markets, and even during the formative stages of a new bull market. It’s a sector that appears to insist on a solid bottom formation before it considers embarking on its next bullish ascent. Markets can be fickle, and this is especially true of the DeFi sector. It’s definitely not for the faint of heart.
That being said, many believe the bear market to be behind us, and though the majority of DeFi tokens are still very much undervalued, There are some that appear to be making some early moves. Whether or not these appreciations in value are going to hold, remains to be seen. One such project is CoinFLEX. FLEX is an AMM (automated market maker) and has experienced enormous gains during the first quarter of 2023.
At the time of writing, CoinFLEX is in the process of transitioning and rebranding to OPNX. CoinFLEX is another project that was impacted by the liquidity crisis of 2022. CoinGecko began tracking FLEX during the final months of 2019. During the months of July to December, FLEX was trading in a range between $0.18 and $0.48. FLEX continued to trade predominantly sideways for much of 2020.
However, along with the arrival of 2021 came an enormous shift in sentiment. FLEX went on to rally as high as $7.56 during the month of December. The price went on to completely collapse and hit a low of approximately $0,02 in November of 2022. This is where FLEX went on to consolidate, prior to skyrocketing in 2023. The token began the new year a little below $0.06 and surged as high as $2.84, all within the first quarter.
This is a return of approximately 50X in under 3 months, which is rather impressive, considering the environment. FLEX is currently trading above a dollar, which is still considerably higher than $0.06. All trading and DeFi activities were halted on the 28th of April as part of their evolution from CoinFLEX to OPNX. At this point in time, FLEX is more likely to be considered extremely risky.
There is no guarantee of OPNX launching successfully, or even at all. At this stage of the game, it’s a little late. However, staying up to date with announcements and developments could, once again, create another great trading opportunity. However, this is not a guarantee. I am actually surprised to see the token trading at a dollar, especially given the current uncertainty and transitionary situation.
Final Thoughts
Even if you missed this incredible trading opportunity, as I did, it’s still an encouragement to see such gains taking place so prematurely, in relation to a new bull market. The risk element has definitely increased since the end of April. However, as I mentioned, depending on how this story unfolds, it could recreate another tradeable opportunity.
It’s always important to conduct exhaustive research when trading altcoins, especially coins and tokens that are in the midst of a “transitionary” process. Do your own research… and stay safe! See you next time!
Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.