Panic Sell

Well if you were already grumbling over the markets these past few months, then you'd be in tears by now with the price action over the last couple of days. As usual everyone has an opinion in times like this, surprisingly the most vocal of them come from those who have little or no stake in crypto.

Luckily the buzz here on hive is a bit subdued, even though Hive wasn't spared from the downturn. Nobody is panicking (at least openly) and we seem to be going about our regular business, unbothered and unaffected by the Price fluctuations. But this isn't the same scenario everywhere else, as some people are making a run for it and quickly dumping their assets.

These days when I see panic selling of one's crypto assets, I ask myself 'what's there to sell'. I mean selling to take profits is one thing, but if you're panic selling there is a high possibility it is likely to cut losses rather than protect profits. If one panic sells and dumps their crypto assets during the bears, does that not reflect the overall confidence in the project itself? We should be gradually phasing out the stage of investing heavily in projects we have no fundamental belief in. Those quick profit, easy money projects can still be run on the side but the more serious projects need to be at the forefront of our investment focus.

So dumping your assets now is more or less accepting two things: firstly that the project in itself is of suspicious potential and will likely not stand the test of time. Another thing is that losses are okay with the investment. It is unwise to simply throw money around, and therefore I assume that everyone in the space comes with the intention of choosing that profitable investment that'll reward us greatly in the future.

That said, the real temptation comes when an asset gradually declines over a sustained period of time. Take for instance the Luna crash that saw the crypto drop from nearly a hundred dollars to zero in a few days, it is easy to quickly sense danger of a failing project and see if losses can be cut. It'll take some real faith for anyone to still believe in the UST Terra project after the collapse.

Other investments tend to decline gradually over a period of time. Take for instance the Hive project that has gradually declined from an ATH of $3 to about $0.35 cents in a couple of months. There have been shard periods of decline, but there is more sustaining periods of stability to show a functional project. When such an asset declines to an extent, even the most resilient of faith is tested.

For me these days I ask myself 'why' when there is a temptation to sell. I can sell at a loss if I have a genuine need that needs to be met with all other sources of income dried up, but Selling because other people are afraid will definitely not leave with the same sense of satisfaction

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