March 22, 2018, 4:23 p.m. Tags: blog 

The Long Road To Defeat

Projects run the risk of finding initial success, expanding rapidly sometimes for a year or more, only to fail from mismanagement or shifting market sentiment. These companies often find themselves with a null use case – and a price that’s dropping faster than market interest in their product! The only thing worse than being average is being boring in a market as fast-paced as crypto.

Only pumpers who are willing to take the risk for a quick profit will jump on a sinking ship; they just want to load it up with TNT and blow a chunk of it sky high before the sinking hull fertilizes a new reef.

A good example of such a phenomenon is a project that had quite the buzz surrounding it back in late 2014 called Paycoin. It was the dream of many investors – a guaranteed price floor which would protect you from incurring too many losses with all coins re-bought at a guaranteed price of ten dollars! The project was holding steady for the first month and even appreciated around 60% from its ICO price.

Unsurprisingly, due to a conceptual error Paycoin crashed and burned hard as the price was manipulated by intelligent traders for a hefty profit. It was defended quite rigorously on the forums and social media as a minor setback, but fanaticism can’t save flawed fundamentals.

Nowadays where does it rest? You’ve never heard of it for a reason – this is just one of many projects that serve as a testament to flawed fundamentals. There is no doubt that there will be many similar stories in the future.

-Wan



March 22, 2018, 4:19 p.m. Tags: blog 

Becoming Un-Tethered

When it comes to the issue of a major market crash it’s best to use available information to attempt to determine a precise cause. The markets could be moving beyond normal market cycles and corrections as a result of mere volatility as we have observed them correcting downwards over the past month.

Tether, one of the largest safe-havens for crypto profits (due to its supposedly stable value), was recently subpoenaed by the US courts. In this light it may be worth considering the long term implications of any subversive or otherwise dishonest actions made by Tether and its associates. The issue is not only how much their printing press could have distorted prices, but also how much confidence that false safety net may have created.

Markets will likely be hindered until a more provably secure safety net arises - which is conveniently already here in the form of the Ardor AEUR childchain token.[1] This token seeks to peg its price at a 1:1 ratio with the Euro while also being fully transparent and third-party-managed by a trusted company: the Lithuanian-based Mistertango Bank.[2] While not a proof of a perfect 1:1 ratio for all AEUR tokens, this partnership will likely instill confidence to a crypto market hungry for stable pegs. Rest assured this development will inspire more projects to build upon this emerging demand.

-Wan



March 22, 2018, 4:07 p.m. Tags: blog 

Enthusiasm

Enthusiasm: it makes us optimistic and heady, and sets us up for euphoria - but potentially failure as well. When it comes to our imaginations and hopes for the future, the wise among us try to keep themselves tempered with realistic expectations. This even includes when things are going well because life is similar to a natural growth pattern in a market: plenty of ups and downs that trend towards an incline.

A rapid rise often leads to problems because your successes are not tempered by experience. This in turn can lead you to making mistakes more easily, compounding their effects into a dramatic spiral of missteps that wisdom and its foresight would have easily guarded you against.

Furthermore, being successful too soon can cause us to get ahead of ourselves: thinking we’ve secured gains when they’re just on paper and thinking we have everything in order without triple checking it to be secure are just two examples. You could lose keys or forget a password on accident, even when you feel like things are backed up properly. You’re sure that’s not the case... but you locked away the info so long ago that the critical elements have long since faded from your memory!

So even when we find ourselves reveling in success it’s also important to keep in mind just how quickly a massive failure can occur that threatens to turn that success into a colossal failure. Think of it like this - the faster you get rich the faster you’ll likely lose it as well, and falling from grace hurts twice as much because you have so much further to fall.

Take a step back, congratulate yourself a bit on your successes, but don’t mistake yourself to be invincible: humility is key. Let us draw upon the wisdom of minds long past who once said: “A stitch in time saves nine” so that we’ll better consider how to prepare ourselves for the road ahead.

-Wan



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