Letting A Bad Crypto Investment Die
You may have read my article last week about CRO. Although I am not really interested in CRO, I am a holder of the CRO token and as per the chart I shared last week, my investment is down around 80%.
Here you can see the longer timeframe. I originally bought the CRO to get the cashback in CRO from using their visa card. I think I paid between $0,33 and $0,37. My buy-in was before they cut back the main benefits and CRO dived to around $0,20 and lower. I wrote about that here.
Without providing any benefits, why would people use the cards? You can see from the chart the TVL in CRO. There is a huge difference up until May 2022 when there was a large growth and then it flatlined from around May near their change to the benefits of the visa cards. The bear market could also be a factor here for the lack of growth, but I think the reduced benefits are the main one.
We have now what looks like a huge vesting where insiders have taken out a huge amount of value from the token and my consideration was should I now buy some CRO in expectation of a rebound?
What would you do?
Before I investigated the white paper, the tokenomics, and the number of wallets and use cases, I was thinking it would be a pretty good bet. I could hope that the price recovers, cash out my old CRO, and also make bank on my new investment. What could go wrong?
In this bear market, there are also many other opportunities and betting on CRO because I am already invested there, may not be the best thing to do.
Although psychologically I may want to invest to stop myself from having a losing investment, it would be smarter to just let this investment die and choose the best available investment that is available to me right now.
This would mean, if I am looking for a high-risk 10x return, instead of lumping on CRO, I could choose another altcoin that doesn't have the FUD surrounding it as crypto.com does, the token inflation, lack of use cases, growth, etc. This means I would be taking on less risk and have a higher chance of reaching my goal.
The hard part is to not think you need to be involved in every token when something happens. While most people are focused on the current "in thing" that's happening, it is better to focus on projects that are quietly working in the background producing profits day in, and day out.
They may seem boring and not as exciting as waiting for the next 10x, but seeing your boring crypto stack slowly 10x is far more rewarding.
Thanks for reading.