Recent news about a new stable coin in the market that is meant to be pegged 1:1 to the US dollar has seen some drastic drops in value as of the moment, dipping to as low as 65 cents last May 10, 2022.
Countless theories and explainers made both by cryptocurrency influencers and common crypto-enthusiasts have been made and published in hopes of giving a sound reason as to why this is happening, but most of them fall short into one factor or another. Truth be told, nobody exactly knows what the reason is for the said dip.
However, as per my personal analysis of the current situation, the dip is primarily caused by the people losing confidence in their front-running cryptocurrency in exchange for the utility token that is meant to stabilize the value of the former. This mirrors a very big aspect that affects most cryptocurrencies in the industry right now.
The public’s confidence in your project.
You could build the best project out there with the most innovative features and the purest of intentions, but without the public’s trust, Your project’s bound to fall into shambles and die off into obscurity.
Now, this is not to say that Public trust is the only thing you need to take care of as an aspiring project creator, multiple factors must be taken into consideration in order to ensure that your project is a success.
This is why projects like CUDOS, only released last year continue to strive amidst the bloodbath that is the cryptocurrency market as of now. The tasteful combination of a sound project with a very good foundation and framework, along with a strong tie with its community allowed it to withstand the harsh tests of the industry and is bound to bridge the next gap in hopes of revolutionizing the way people look at cryptocurrencies.
They were able to do so by painstakingly creating an interactive community, and making said community a huge part of the development of the project. In comparison, a typical project will crowdfund their project, possibly crowdsource a few people through job listings and such, and call it a day. This extra mile CUDOS took the time to exert paid off generously for them, as seen currently with their ongoing successes.