OHM, Decentralized Finance (DeFi) protocol native token Olympus , dropped nearly 35% at around 2am UTC on January 17, when the whale dropped 82,526 OHM (worth US$13.3m at the time), sparking a series of liquidations. which exacerbated the fall in prices.
In terms of market capitalization, OHM lost almost $474M after the sell-off, dropping from $1.35B to around $877M in an hour.
At 08:46 UTC, OHM is trading at 128.03, down 30.4% in the past 24 hours and down 47.2% on the week.
Journalist Colin Wu reported that prior to the OHM dump, “announced APY [годовая процентная доходность] reached 190,000%.” However, according to the project website, this figure has dropped to 3830%.
Meanwhile, some users have noted that OHM has been on a downward trend for several weeks now, arguing that it was inevitable.
“I have a theory about why the bubble started to burst 6 weeks ago. At some point I will state it, but it’s a little ironic. confuses people in rebases. And then the greed dissipated,” said one user.
In fact, just last week, the coin dropped from a local peak of $264 to $161 on Monday, down about 30%. On zoom out, the coin has been in a downtrend since hitting an all-time high of $1,415 in April 2021. Since then, the price of OHM has decreased by 91%.
Olympus, run by a decentralized autonomous organization (DAO), provides financial services based on smart contracts. It says it aims to create a “pegged stablecoin” backed by cryptocurrencies rather than fiat currencies.
However, the coins offering unprecedented APY rates of thousands of percent have left some skeptical about their sustainability, with some even calling the project a scam.
Another criticism of the project is that the value of OHM tokens is set by both the project’s asset treasury and the DAO. Some users claim that the DAO is the sole person responsible for setting the price, which makes no sense and is therefore subject to extreme volatility.
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