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What does a token drop represent (is a token valuable)

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What does a token drop represent (is a token valuable)

What does a token fall represent? Editor’s note: This article is from Wind and fire wheels Community (ID: FHBT18). The author is Peipei. Odaily Planet Daily is authorized to reprint it

Hello everyone, I’m Peipei. Recently, the market has fluctuated a lot. Especially, the trend of Ethereum and the previous period are both a process of decline. Yesterday, Bitcoin fell 10% and then recovered to around 11000. However, this process does not mean that the market has recovered to its previous position, which is just the reaction of the market under our observation. This morning, the currency price began to decline, but there was no problem in the general direction, mainly because there are two reasons:; The second is that the market’s price for Ethereum needs to continue to rise. After all, many investors are concerned about the value of Ethereum, so I personally think that the price may continue to fall, but at present Ethereum has not reached a high point. If we look at the current trend, it may continue to rise

Of course, Ethereum is not Bitcoin

Let’s take a look at the DeFi project on Ethereum. The current biggest hotspot in this field is the centralized lending platform on the Ethereum chain, and these lending platforms can even have a slightly larger lockdown than other lending platforms. So who is the real application scenario? I have also discovered some similar issues myself, such as whether mortgage lending in Defi can meet users’ asset liquidity needs, and how much funds are deposited in Debank? I think this is the most important thing Firstly, there are transaction fees on the Ethernet, which refers to the amount of fees required for users to deposit tokens, as well as the amount of transfers on the Ethernet. And now the borrowing function on the market can basically be understood as the balance deposited in the bank, so how do you use it? In this way, you can directly use the service of borrowing money, or earn Stablecoin income by borrowing money. Of course, you can also mine in other public chains For decentralized exchanges, this situation has also been discussed by many people For example, in December last year, a netizen posted a message asking “Should UniSwap be renamed UniSwap?” Then someone replied, “UNI should not become UNI.” This message was later confirmed to be “UniSwap does not belong to SushiSwap Some friends also commented that this behavior may be a “scam” or “scam”. They stated that Uniswap is a decentralized lending agreement, where users can deposit ETH or ERC20token and send it to the UniSwap address, and then deposit the token into UniSwap’s contract account to receive rewards. This way, there is no need to worry about being hacked, and users can also extract their assets into their smart contracts at any time Another question is what risks does this operation bring to users? Because the entire market is currently in a state of great panic, are tokens valuable The rise of blockchain has made people realize the importance of tokens, because in this situation, they can earn profits or other benefits by issuing their own tokens. This is contrary to what some people in the Cryptocurrency market call “digital gold”. If someone wants to buy some form of assets (such as Bitcoin or Ethereum) at a faster speed, they will be able to become a means of value storage and trade. But how do these tokens work? Why is there such a problem? We know that there are many application cases of Cryptocurrency and blockchain technology in the market at present, but they also have some different aspects that make them scalable and flexible. What is a token? A simple example is that various smart contract based virtual products such as Bitcoin and ETH may be used to exchange goods and services. However, some tokens do not necessarily represent anything, such as stocks, bonds, and even can be sold as currency. In fact, most ICOs are raising funds from investors at lower prices Although many projects raise funds by dividing tokens into small parts to generate revenue, it is rare for large companies like Coinbase to directly draw a lot of experience from this field. Therefore, in some cases, tokens also have great potential to play a role:

1. Converting tokens into cash: this mechanism will enable you to use Bitcoin and Ethereum without relying on traditional banking service providers

2. Convert Bitcoin into Fiat money: This means that if you want to exchange your money back into dollars, you can send it to Bitmain or Firecoin 3. Paying electricity bills in Bitcoin: This process is very complex and requires a lot of computing power. When you own a Bitcoin, you don’t need to pay a fixed fee

4. Stablecoin denominated in US dollars: this may lead to increased volatility and affect your portfolio What is the “token economy”? According to the research report of the Bank for International Settlements, “crypto asset is a unique financial tool”, which has a huge impact on the Global financial system. The term “token economy” was proposed by Brian Holowitz, a former Wall Street veteran and a famous American Stockbroker and law firm. It is a plan to promote global adoption – that is, to establish a set of agreements in line with the regulatory framework. The organization also proposed a new draft rule called “The Asset Equity”: “This bill requires all regulated entities to hold ownership of their own legal currency.” As there is no central agency involved,

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