There was a time when the cryptocurrency price fluctuated drastically, and there was a time when the price of Ether was about to fall below $100, when a sound came from the market that a large amount of money pledged to supports the Ethereum network. At that time, the amount was huge. If the price of Ether fell below $100, it would have a bad effect.
Some times ago, the market began to plummet again. At that time, the DEFI pledge on the chain was facing the risk of being liquidated. The ETH pledged by the founder of TRON, which was almost liquidated, triggering a series of plunges.
Today, the market price has plummeted again, and as a result, there are voices saying that if the price of Ethereum drops to 1,800 US dollars, it will face a series of liquidation on DEFI , and the currency price may cause a waterfall. There may be waterfalls one after another, and the result will be one after another. When the most dangerous time comes, there is always a pair of invisible hands to protect the growth of the market.
Prior to these things I am most impressed last year because the market was straight down turn, falls arrival, bloody miles, the results fortunately BITMEX brother pull the network cable, this prevents the chain increased warehouse explosion can be said , This is the first time in the currency circle that the behavior of unplugging the network cable has been praised. In the end, BITMEX was sued by the U.S. for unapproved cryptocurrency contract futures trading. So far, there is no result. Although many people are forgetful, this situation does not forget by everyone who protects the behavior of the cryptocurrency market.
I had a point before that the open financial model of DEFI has two flaws. The number one is anonymousness, and the number second is open position. The first one is that we will not discuss today, but for the pledge and open position of the DEFI market. In other words, it is a defect that is often overlooked by everyone. Because in the DEFI market, most people's position holding behavior and operation mode are public, and any behavior can be queried on the chain, so this also gives some short sellers an opportunity to know the staking line of the pledger. Then it may carry out precise liquidation and finally make a profit.
Because of this, I personally pay more attention to blockchain privacy projects. I have also invested in some such privacy projects. However, from the current situation, although many exchanges may bring the liquidation of pledges, it can also Arouse cryptocurrency enthusiasts' currency price protection.
One thing we need to admit is that in the cryptocurrency market, most participants are cryptocurrency enthusiasts. They like to invest in cryptocurrencies and are willing to see the further development of cryptocurrencies. Therefore, the rise in currency prices has always been their inner thought. However, in other words, most people do not want to see cryptocurrencies become bad.
As for people who look down on cryptocurrencies, we also need to know that most of these people will not go short on cryptocurrencies. It is their code of conduct that they are not short on cryptocurrencies, because most cryptocurrencies that have skyrocketed and slumped have long been short on cryptocurrencies. The people in are not friendly, so generally speaking, short sellers are basically just people who are not optimistic about the market during a certain period of time. Because of this, when the market plunges, there will be a pair of invisible hands secretly protecting the price of the currency. They are not willing to lose a market like cryptocurrency because of short-term benefits.
So why does the market do this? In fact, we should understand that the current cryptocurrency market is actually unsound, and many manipulations are involved. For Bitcoin and Ethereum, it may be better. After all, their size is too large, and it is generally difficult for a single main force to manipulate price , but for other altcoins, it is actually very simple. Therefore, we can think of this market as their cash machine. Because of this, there will be no phenomenon of exhaustion, otherwise it may be cut too badly at one time.
After the market returned to rationality, it was obvious that the DEFI brand became a shield to protect the price of the currency. Although I played with you and I showed my golden card, you can’t win me every time. The reason is simple. If you win too much, I won't play anymore, which is exactly the reason. It can be seen that, on the one hand, the disadvantages we see sometimes may become our advantages. On the other hand, this market still needs a lot of training.
