Cryptocurrency, DeFi to be precise, was meant to take power away from the rich and give it back to the poor. Decentralised Finance (DeFi) was meant to be, well, decentralised. No centralised entity was meant to control the platform(s).
So as you can imagine, I was incredibly shocked when I logged on to compound my daily earnings to discover the price had plunged from around $4.50-$5.50 per FUR token to below $1.00.
What the f*ck happened?
As I researched the crash I discovered it wasn’t due to a massive sell-off.
No, the Furio devs decided it would be great to lower the price to “save” the project. Potentially having the opposite effect, as investors saw the price drop and panic sold their bags.
WTF is this crap?
Now, if you’re wondering what the hell Furio is, let me tell you.
Furio is a high-risk/high-reward daily ROI app where you can earn between 0.5–2.5% daily return in the native FUR token.
Now, before you tell me how unsustainable that is, let me explain how this project became sustainable.
The Furio team have given us investors a crash course in sustainability.
- First, you create a project with a “stable” coin price between $4.50–5.50.
- Second, you lure investors to your project with promises of riches.
- Third, you adjust the contract when you realise it is not sustainable to try and save the project.
- Four, you run with your profits and leave the project to die.
Jokes aside, step four hasn’t happened. And I don’t think it will either, I’m not FUDDING my own bag, let me explain.
Furio devs made the tough decision to try and save the project by reducing the price. Yes, that sucks. They shouldn’t have the ability to change the price. They are planning on making the contract immutable. Until that point, Furio is centralized IMO.
This price adjustment was undoubtedly a tough decision, but the right one.
It was much better than the other two options that Furio stated:
- 1: Freeze the contracts
- 2: Carry on “as is” and watch the LMS get abused to zero
And I believe that this decision will help Furio become great once again. I will take the short-term loss, for those long-term (potential) gains.
The aftermath
Look, a lot of people were pissed when their FUR portfolio’s devalued by 78% overnight. Then add this comment from the Furio dev team onto the raging fire pit:
“Since the issues with FTX and the pressures this has created, we have been staggered by the immaturity of certain members of the DeFi community.”
Then you’ve got a recipe for a very, very pissed-off community.
The Furio team should have taken responsibility for their actions instead of passing them off to the community and the market/FTX situation. Maybe they missed the memo about “the customer is king”? Anyway, once the dust had settled the dev had a chance to explain why this change had been made.
The project was getting rinsed to the tune of around $80,000 daily. With $2.4 million remaining in the LMS funds pool, the contract would have been emptied in less than a month. Everyone saw the contract being drained and followed suit like lemmings jumping off a cliff. So understandably, the devs had to take the initiative and change the contract/price to save the project. IMO that’s better than pulling the rug.
Speak the truth
Honestly, I’m unsure about this project. I’ve lost some trust as the devs keep on changing the contract. This is the kind of foul play that shouldn’t exist in DeFi. Yet, it is for a reason. So to regain the trust of the community, the devs should:
- Guarantee that the LMS will stay in the new range of $0.90-$1.10
- Involve the community in major decisions
- Don’t set release dates for new projects until they are 99% ready to launch
Losing money is bad enough. It’s much worse when the investors lose confidence in the project. Angry investors spread bad news, and bad news is bad for business.
Time to move on
Humans hate change. They hate them even more, when there’s money at risk. These changes sucked for every single Furio investor. But on the bright side. If they had kept the price, the project would have died before Christmas hit. Then everyone would suffer huge losses without being able to scrape back some earnings. This change has allowed us to keep earning interest on our investments.
Furio devs could have let the project die and run off to start a new project. Instead, they stuck around to try and save the project and give it a future: a tough decision, no doubt.
There is a silver lining. You must look past the short-term losses and embrace the potential long-term gains.
Not financial advice. DYOR, don’t listen to random people online.
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