Here we go again.
The same circus is playing out. We see this repeatedly throughout the cryptocurrency industry. Actually, we are seeing things play out with the same platform as before.
Why is the cryptocurrency industry so against building value? It seems like common sense business practices went out the window.
Of course, all the monkeying around with token burns is not the answer yet we see it done, repeatedly.
And, once again, it is the solution.
By now everyone who is remotely related to cryptocurrency in any way is aware of the situation with TerraLuna and UST. The price of Terra has plummeted, becoming one of the quickest eradications of crypto wealth.
While we can make the case it was a coordinated attack, the simple fact of the matter is that the design failed. Many want to point to the algorithmic driven backing but that might not be the case.
In reality, the problem was that the ecosystem didn't have much value. What was operating on there? What incentive did people have for holding onto the token? In the fact of massive appreciation, what utility was offered?
The answer to these questions is pretty clear. There were only a handful of applications operating, providing very little traffic.
In spite of all this, the community is now trying to save what is left by burning more tokens. Millions of LUNA are being burned in hopes of massive price appreciation. For some reason, people actually believe this is going to work.
Here is a question: what happens if the price does move up significantly? How do you think this is going to unfold with those who are still holding tokens?
The likely outcome is that people will dump, trying to salvage what they can. Therefore, any gains in price will be short-lived.
The reason is there is no value to what is being offered there. Without the building necessary to have a solid foundation, the house of cards is not going to be rebuilt.
Have you noticed how some of the projects a great deal of development are completely overlooked by the market? Perhaps you noticed that about some you are holding? Do the names HIVE, LEO, CUB, and POLYCUB ring a bell?
What do all of these have in common?
The prices were mauled by the market. They were kicked down and spit out. That is the layer that most of cryptocurrency looks at.
There is another commonality spread throughout them all. Each of those is tied to teams that are committed to building. They are engaging in business practices. Growing users bases, bringing out new updates, and adding more opportunities are ever present. Within the Leofinance family of applications, we see more than existed on Terra.
While the market might overlook the projects we are supporting on a daily basis, we know the activity is moving things forward. There are users, project team leaders, and developers all pushing things along. This is why we can see legitimate use cases.
Cryptocurrency seems to overlook this simple premise. Few seem to understand how long it takes to build a successful company. Sure, things can happen rather quickly but often the path is one of trudging, gaining one new customer at a time.
At the end of the day, success comes from value. Offer that out and people will flock to you.
Of course, in the digital world, this comes from having something to offer people. Most of the applications we see are still in their early stages. Since most were attracted to the monetary side of things, we see that advancing well. Uniswap and other applications of that nature are doing well.
Yet, once we move passed that, we are lacking for the most part. Here is where the abovementioned projects are seeking to make a difference. This is why there is a better way than just burning tokens.
When projects focus upon building value, they are following a proven path. It is something that cryptocurrency tends to overlook since the talk is of Lambos and Mooning. Rarely do you see people discussing the idea of a project making a great impact.
Fortunately, the latter is what we see discussed on Hive quite regularly. We know we are changing lives.
For those unaware, Hive is helping communities in Ghana with their water situation:
The second project is just being started and seeks to give the residents access to local water.
These might not add a ton of direct value to the ecosystem in terms of the number of users, transactions, or money moving back and forth. What it does is show how Hive is more than just a pump (pun intended).
At the end of the day, the best defense comes from resiliency. Building value does just that.
If you found this article informative, please give an upvote and rehive.
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