Good afternoon, how are you all? Of course, you are all very well. Today, I will talk to you about another new crypto. And actually, this is a news article. I have collected this information by digging through various news articles, and I am presenting it in my own way. I think you will like it.
Whenever something new happens in the crypto world, we get a little curious and also a little worried. Seeing the fluctuations of the Monad token that I have been seeing for the past few days, I also felt that it was necessary to look at the matter a little closer. So, after reading the whole incident and understanding it, I am sharing today's article from my own feelings.
Monad was in the news from the beginning as a new layer, 1 blockchain. Although the price increased in the beginning, the sudden 15% fall of the token really surprised many. A few days ago, the price was 0.04 dollars, and now it has dropped to around 0.03. Naturally, the question arises, what happened that people's confidence has become a little shaky?
It seems that long-time holders are taking profits. Those who bought at the very beginning are selling as soon as the price rises. As a result, the order book is unbalanced, sellers are increasing, and buyers are decreasing. New short positions are also being opened in the derivatives market. All this has increased the pressure.
But the real blow has come from the other side, the spoofing issue. Within two days of the network launch, some bad actors have tried to mislead people by showing fake transfers. Monad's CTO himself said that fake notifications have even been created that a transfer has been made from his wallet. Although this did not move real money, such incidents still hurt confidence in the new chain.
The strange thing is that despite the bad news, the chain's on-chain activity is very good. About 1.5 lakh users, 4.7 million transactions in three days, these are no small things. On top of that, about $711 million in stablecoins have entered the chain, including cross-chain fund flows with Solana and deBridge. The growth is truly remarkable in practical terms.
So, at one point, it seems that the direction of on-chain growth and price movement is not always the same. When the market mentality is in a risk-off mood, even good news cannot sustain the price.
I think Monad has long-term potential, but in the current environment, people will not believe it just by hearing. The market now wants to see proof - real use cases, developer attraction, ecosystem, all of these have to be built over time.
Finally, the challenges that Monad is facing are not unusual for a new project. However, they need to be more strict on transparency and security to restore trust. And as users, it might be better for us to take a little time and make a decision
Posted Using INLEO