Today COTI took another expected hit like most of crypto dropping another 2.5% which is actually welcome news in this case. The COTI Treasury a few hours ago had 389 million COTI staked and currently shows 3 million tokens less.
The hope is these 3 million COTI were liquidated which will be distributed to those staking in the no risk Level 1 pool. I actually did not think anyone was dumb enough to think they were safe in the risk pools where liquidation is a real threat.
The big win a few months back was when roughly 10 million COTI was liquidated within a few hours and we benefitted by a boosted APR over the two weeks that followed. I have been monitoring the base APR which is up .13% this evening. This is still too early to know how this is going to play out and how many free COTI tokens are coming to those in the risk free Level 1 pool.
I think this is so unexpected because I think we all kind of knew the price was going to drop after watching the prices across all crypto continuing to slide. Seriously you have to either be so rich not too care or just super dumb to think you will be safe under these market conditions.
Where we are in the crypto cycle price does not worry me at all as the focus has to be solely on accumulation trying to get as many stacked away as possible. Price is only important when the time is ready to sell and no one should be dreaming of selling any time soon.
The 3 million may turn out to be worth a few hundred extra COTI per stake holder depending on the size stake you hold so this is still very early days to see when this kicks in and how many tokens will be dished out. Maybe someone withdrew their stake and this is nothing, but the slight uptick in the APR suggests liquidations is the reason for the total TVL drop.
Hard to imagine not that long ago many were complaining about the price having dropped below $0.10c and now we are seeing a price hovering just above $0.02c and will most likely go lower. Nothing has changed as the fundamentals and tech behind the project remain the same so these are the times to keep your head down and rinse and repeat what you have been doing for the last 4 years.
One just has to look at the APR on HIVE tonight sitting at 3.74% which I have never seen it this high before. I do not know if this is good or bad and are we printing more HIVE than ever now? There is always a downside when we see an upside so I am hesitant to say this is actually a good thing or not. We have seen these price levels before it was just maybe not on the radar to get back to those same levels as you kind of think that over a 4 year period you would have increased in value even a little bit. The problem is they say everything that goes up must come down yet we have not exactly gone up yet.
