What a morning for OlympusDAO - over-leveraging causing giant dump!

Have you heard about OlympusDAO? Not yet? It is by far the most popular currency currently on SushiSwap and they have had more than $300,000,000 trading volume in the last 24 hours, without being present on any centralized exchange at all.

OlympusDAO is a treasury-backed currency providing its own liquidity. This might all sound strange, but the principle is that whenever you buy an OlympusDAO token, you can know that it is backed by the treasury of the project. Whenever people buy OHM bonds, the treasury is growing, thus making the entire platform stronger.

To further inspire people to join the fun, they have a current APY of more than 7000%, making it very attractive to buy tokens and join in for the long run.

In order to join with even more money, many people have leveraged greatly, meaning that they have borrowed capital in order to invest in the project. This is easily done and thousands of people do so. But, when the price is dumping, many of those loans are terminated, causing even more tokens to be sold, and thus dumping the price even more. That is what happened to Olympus DAO this morning as the price dumped from $1200 to $600.

https://twitter.com/sayinshallah/status/1448913219637202951

Now, since the dump, the price is constantly increasing as people are buying the dip, and currently, it is trading at $950 per token.

Wonderland, a fork of OlympusDAO, experienced exactly the same with their protocol, meaning that it dumped from $7000 to $4000, but that one is currently trading at around $6200.

I guess some people are really happy about this event as it gave them a chance to buy more tokens.

How I experienced it...

When I woke up today, the price of $OHM was $600. I totally went crazy and thought I should buy some. The only problem was that I didn't have liquid DAI ready, so I had to sell some tokens on Uniswap. That was a nightmare because the gas prices were around 150 (or higher) causing one single trade to cost more than $100. And when you are in a hurry, things are even harder, not only because you are in a hurry, but lots of other people are, causing price movements quickly, so I even got some transactions declined.

In the end, I was able to buy around $850 (which is far more than $600), but still way lower than the $1200 price of the token from yesterday. Now I just have to wait and see what will happen from here on!

One thing that has caught my interest is the launch of the official OHM fork named Klima DAO that will happen on Monday. My plan is to get in from the first second, but I have some doubts because I have a feeling that it will be completely overpumped from the first second. No matter, it sure sounds interesting, as it has a clear vision of removing carbon from the atmosphere and supporting the environment, while also bringing great value to its users. You can read more about Klima DAO at https://klimadao.finance/