Beware of the Whales of CUB

in LeoFinance4 months ago

Roughly two days ago, I'd finally ditched Binance's measly %1.28 APY interest on Bitcoin, and exchanged all of it over to the CUB-BUSD farm to bask in that plentiful ~%560 APR. Needless to say, lofty thoughts, such as flipping my boss off, buying the most luxurious car the world has to offer and living on a private beach somewhere in Dubai got ahold of me :P

That was, until I was quickly pulled back away from Cloud 9 to reality when I woke up to this:

Now, this might not seem like something worthy of attention to some of you, especially to those making 10x their wages, or just enough to offset the loss. Doubly so considering that CUB has been on a 45 degree positive trajectory this past week:

It isn't the shock of losing the value of my CUBs that snagged me down. Rather, it's the revelation that came along that steep pushdown that the TVL held across all the pools are relatively low in number compared to the other big players in the DeFi space, combined by the fact most of the value is probably held by whales, complicated by that fact that CUB is not even a month old.

Much like the authority over a company is distributed proportional to their shareholders, the dictation of CUB's price, especially in its infant stage, is at the whim of the whales with the most number of zeros in their bank account, essentially establishing a de facto centralization. Of course, as the project grows and the value locked sees parabolic rise from smaller investors, it becomes gradually harder for whales to flaunt their reign over the price, and aggressive marketing campaigns, the game-changing LeoBridge that was supposed to be releasing a few days earlier and the Kingdoms vault all work towards pulling new investors in, which has proved to have had an imperative impact on handing of the authority of the price back to the people, making it truly decentralized.

But the title of this post can be read both ways. Just as they can be your worst nightmare, they can flourish your dreams. Whales have the power to increase the price in a dramatic fashion, and the LeoFinance community has fostered a lot of people wealthy over the years. With such a strong userbase of influential members, It's almost as if CUB was poised to succeed from the moment it launched! But all it takes to flip the table is a singular whale dumping their earnings and kicking the bucket on their farms.

You just never know what the whales are thinking, especially in such an experimental landscape in the Crypto industry, and this is where the reminder of putting in what you can afford to lose comes into play.

Moving Forward

In face of this realization, I still opted to keep my skin in the game because of the great potential this project has to bring to the table not just for its own community, not just for providing a reputable solution amongst BSC's booming DeFi market, but for the greater Crypto space with its many features that is going to service the entire industry at large particularly through LeoBridge. Plus, I just can't say no to an APR of %1.5 per day, can I?

With that being said, I'm going to redirect all my crypto revenue across the table towards CUB, the first DeFi project I've wholeheartedly participated in, to show my support for it, and to one day achieve my dream of owning a mint-condition Lincoln Town Car. What's your 'make-it' car?

Thanks for listening!

Posted Using LeoFinance Beta

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Posted Using LeoFinance Beta

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