Investors must remain vigilant in the prevailing market conditions. The digital asset space is not free from the influence of macroeconomic factors. Hopefully, one day it will be, but currently, it remains correlated with traditional markets, and the macroeconomic situation is bleak, incredibly bleak.
Despite Jerome Powell’s best efforts, inflation continues to creep up, and looking to history for guidance shows that the last chair of the FED who managed to break inflation was Volcker in the 1980s. Volcker raised the federal funds rate to highs of 20%, which was brutal and pushed the U.S. into recession. But this recession was necessary to reignite the economy. Investors must understand that the current federal funds rate is only 2.5%, and if Powell seriously wants to tackle inflation, things will get far worse before they get better.
It leaves investors stuck; assets will continue to bleed as the FED raises rates, and fiat continues to lose its value due to inflation. Uniglo (GLO), a new DeFi protocol, has been designed specifically to tackle this problem and has seen a steady rally in the past month. As demand floods the presale, its price will continue to soar. This store of value is a much-needed addition to the space and is driving its price appreciation compared to Luna Classic (LUNC) and Lido DAO (LDO), which both continue to fall.
Uniglo is best understood as a bear-proof protocol, and it is a project that has seen increasing capital allocation. The native token GLO is value-backed by the assets stored in the Uniglo Vault, and this vault holds digital and physical assets. Through this diversification, it becomes resistant to further market decline. The Vault further shields itself by investing in assets such as fine art typically unaffected by general market performance.
But most crucially, Uniglo’s whitepaper outlines a mechanic titled Ultra Burn. This sees 2% of every transaction burnt, and this aggressive deflation guarantees constant upwards price pressure on GLO. In an era of inflation, GLO’s hyper-deflationary nature is an essential tool for investors to preserve and grow their wealth.
Luna Classic (LUNC)
South Korea has issued an arrest warrant for Do Kwon, and Luna Classic’s price will continue to decline. The recent rally of LUNC shows that the markets still have lots of room to move downwards; this reckless speculation on a token that has already collapsed will burn plenty of investors. And highlights the insanity of the current markets.
Lido DAO (LDO)
LDO has formed a bearish technical formation known as a descending triangle, suggesting bullish exhaustion following the Ethereum Merge. LDO rallied hard with all the media attention devoted to the Ethereum Merge, but now that the event has passed, investor interest will steadily decline, and this token is ready to drop to new lows.
On top of the bearish formation pattern, many also expect a buy the rumor sell the news situation to play out. This bearish sentiment puts increasing downwards pressure on LDO, which is already struggling.
Investors can gamble with their funds, or they can follow solid value propositions. Neither option is objectively better than the other, for, in the free market, investors are free to make their own decisions. But a word of caution, investors who want to generate returns should always follow value propositions and ignore the noise.
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Join Presale: https://presale.uniglo.io/register