Expectation & Reality - Funny How Things Work
Yesterday I was reading a post and came across a comment left under that post, which made me think of the traps we have in the crypto world, including on leofinance and CUB DeFi as well.
At first it looks funny but only for those who have not lost money due to such scenarios. You may know a few cases, where this happened, or even worse, you may have been a player in a similar scenario and lost your funds. In that case this is far from funny.
One of the reasons people like this platform and invest in Leo tokens and CUB DeFi is because they know Khal and are not afraid of a rug pull happening. After witnessing so many rug pulls especially in the defi world, where the high APR offered at the beginning is like honey to flies, having a safe place is priceless.
However, knowing rug pull is unlikely to happen in here doesn't mean you're safe. What I mean by that is Khal (most likely) is not going to run away with your money, but there are traps that can leave you with a huge hole in your pocket, which is nobody's fault but yours.
Let's go back to the beginning, when CUB DeFi started. The screenshot above starts with:
People make post
And that is how the whole thing started. Khal or Leofinance made a post about the plan to start CUB DeFi.
Post says, "Free money!"
In the post it was mentioned the airdrop or the claimdrop if I want to be precise as the airdrop had to be claimed and moved.
People like free money
This is very true, no one can deny it.
People sign on and do things to get the stuff
As a consequence of liking free money, people started to buy and stake LEO as the airdrop was based on staked LEO. For some, the only way to create liquidity necessary to buy LEO was powering down HIVE and using it to buy LEO. They they had to find out that money they thought it's free, needs more money. To move CUB to CUB DeFi you needed BNB or BUSD to pay transaction fees. More headache.
Then for about a month people don't shut up about it and act like promoters on social media
๐ Yes, posts about CUB airdrop and CUB DeFis were endless both here and on social media.
Moon on day one, people happy
Yes, CUB mooned on day one as I think it was sold at $14 or so on CUB DeFi. There was CUB available also on Leodex and Hive Engine as well, but I can't remember the price, I wasn't paying attention as I was not interested in buying or selling.
People write "I told you so" posts
That happened too as after the launch, all you could read about was posts about the launch and "I told you so" posts as well.
Other people join in but this time they're buying tokens
Those high APR's were pretty convincing, quite many bought CUB at $12, $10, $8 or whatever price they could afford to pay for the tokens.
Price goes up a little bit
Yeah, the price was fluctuating, depending on big buy and sell orders. I remember how many were checking wallet addresses in Friday Discord, trying to link the wallet to the owner and find out who they are.
People write "I told you so" posts as they quickly dump their bags in secret
I don't know if this happened as addresses are private, not publicly linked to a name, so guessing was fun i believe but I don't know how many were able to identify the real owners. In any case, there were dumpings.
People who bought then sit and wait for a miracle
๐ Oh yes!!! CUB to the moon!!! CUB to the moon!!! Remember these words? I do! You can still see these on Discord.
Nothing ever happens
This is not applicable here as plenty is happening all the time. We've got Kingdoms and a bunch of new stuff, which means the team is working hard on making it profitable and sustainable. However, from price point of view, there's a little bit of truth in that statement.
Those who were expecting CUB to moon can say nothing ever happens as the price is at $0.6838 at the time of writing and the moon is very far. I can understand that, but in fact no one has promised anything. No one said CUB is going to moon this year or anytime soon. This is how decentralized finance works, it moons when it's ready to moon.
New thing comes out
New things came out as quite many had to learn the hard way, there's no such thing as the only way is up! There's down as well and happens quite often. It's called market correction and it's normal, even healthy.
When we had that big market correction in May, BNB dropped from its ATH, $693 or so, to as low as $215 or so, which was roughly a 68% correction! ๐ฑ
Obviously CUB was affected as well to some degree and as some pools have pairs in BNB, we saw our wallet value halved or even worse. I don't have the exact numbers, but we all suffered impermanent loss as when the price drops, your coins are sold.
This resulted in some leaving the pools, joining the Den as that option looked more safer and as a result, the Den APR dropped. Some may have sold CUB as they possibly lost interest in the project.
Rinse and repeat
I'm not going to comment on this, I'm going to leave it to you.
Conclusion
What I have showcased above is real, we've witnessed it. It is not a scam, this is what happens in real life. Some people got hurt by joining the wrong time, trying to buy the absolute bottom when there wasn't one and so on.
Once you participate in DeFi and learn how it works, what you can expect, it's going to be easier to avoid some traps that come with the project.
We're lucky as we haven't had a rug pull in here and we're still ok. CUB is still young, needs time to mature and the current price action has to be looked at as a good thing. Accumulating at this phase is the best thing you can do.
I hope those who have lost money in DeFi know how to be smart next time.
Posted Using LeoFinance Beta
