Mashed Finance
Ironically, the fact that the network had seemingly been abandoned by its founder actually had a stabilizing affect on the price. Clearly, $160 is too much for a token that's supposed to be pegged at $1.
The DeFi ecosystem is quite tightly knit, and while the hype was in full force, lending rates across all networks skyrocketed as people scrambled to farm units of YAM.
Now that the network is in remission, things have come back to normal, and the price per unit has been hovering around $1 for the last few hours.
Ultimately, and we alluded to this in the intro, this goes right into what we wrote about in yesterday's BMJ Newsletter about stock splits. If valuations no longer matter, then investing simply becomes a game of accumulating units.
If I can accumulate 1 million marbles, why should the value of each marble even be relevant? I'm basically a marble millionaire, which these days many might view as more prominent than being a dollar millionaire.
After all, there are hundreds of trillions of U.S. dollars around, whereas marbles are of a much more finite supply.
Not saying that this makes sense to me at all, but it seems to reflect the way many people are thinking these days. Ultimately, when it comes to investing in this environment, the risk factor is through the roof, but all risk metrics and meters have long been broken, so we really need to approach all investments with extreme caution right now.
As always, thanks a lot for enjoying today's episode of the QE Newsletter. Hope it's been useful for you, just as it will be useful for everyone you share it with in private and public.
Keep sending in your thoughts, comments, insight, questions, and feedback. They're my main source of inspiration to continue writing every day.
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