The DeFi crash was cut off, the biggest mistake is to treat speculation as an investment
Today's DeFi crash brought Bitcoin up. After YAM failed to upgrade, it first plummeted itself.
Then, most of the DeFi projects began to fall along with it. Of course, the projects related to YAM were the ones that fell the most.
The big pie and the mainstream also suffered a wave of small declines by the way.
In this case, I recommend everyone to watch the big pie and the mainstream first. The collapse of YAM is actually similar to the negative news effect.
In a short period of time, the market will be chaotic, and it is not easy to see how the follow-up direction will be. It is a high probability.
So today I will not talk about big pie and mainstream operations, but talk about the collapse of DeFi.
In fact, for the collapse of DeFi, I think all the old leeks in the currency circle should have a little premonition.
The reason is also that there have been many crashes caused by smart contract bugs in the past, and these pledged mining and lending products of DeFi are just bundled together.
This makes the probability of its crash caused by a bug must gradually increase with the increase of nesting dolls.
As long as there is a bug in one of the projects, it will bring disaster to the entire market.
The collapse of YAM this time also confirms this point. Since YAM is related to many DeFi projects, both comp and yfi have been greatly implicated.
And the worst thing here is obviously the new leeks that have just entered the market, and there are even many old leeks that want to try.
From what I have seen so far in the various groups, this crash is indeed no less than a small 94. Many group members lost ten to twenty thousand at least, and hundreds of thousands at most.
Of course, there are still some friends who have not given up until now, and want to keep it and continue to see if it is possible to get up again later.
I can understand this mentality very well. I have had such a mentality in ico in 2017 and Xu Le's GTC in 2018, but the result is that they all suffered miserably.
The project party with a little bit of conscience will also issue an announcement to give you hope, and it will just run away, and will not even give you coins.
So, why do we have such psychology? I think the biggest reason is that we haven't figured out whether we are speculating or investing.
And this, I think, is also something that this wave of cut friends should keep in mind.
Whether it is ico being cut off, ieo being cut off or the current DeFi being cut off, the leeks that are cut off have a common problem, that is, "speculation is regarded as investment".
Many even knew it was speculation at the beginning, but gradually brainwashed themselves into investment later on. This is the scariest thing.
Still the same sentence, in the current currency circle, except for the big pie, which you can invest without thinking, other currencies, including the mainstream, are actually a kind of speculation.
You have to always be alert to whether there is any risk of these currencies returning to zero, even the mainstream is the same. Most of the mainstream can only survive one or two waves of bull market, and then they fade away.
For example, NEO, dash, and xlm, which were very popular in the past few rounds, have all faded away now, and knockoff projects have a short lifespan, basically dying once a year.
Therefore, I think that for those friends who have been cut off from investing in DeFi, the problem is not that you should not touch these projects. In fact, there is no problem with speculation.
I myself often use part of my funds to chase hot spots and speculate, but the problem is that you can't turn speculation into investment, and that would be a big problem.
Therefore, for the friends who were cut off this time, I think we should reflect on the issues of speculation and investment. For our ordinary investors, the money circle can still make money in the big pie and the mainstream, and futures and hot spots are just icing on the cake.
