We have all been there and done that, but what should we do with an asset that has devalued significantly.
Let me tell you a story about my Cosmos (which I could also tell about my TEZOs and Algorand while I am at it).
Once upon a time there was a little relatively insignificant coin called Atom who was full of promise and new ideas. He was going to be on one coin to unite all coins and during a bull run about 4 years he became so valuable that you could see the stars shining all over him (please allow me some artistic licence here 😊) and then he met me and for a while we enjoyed some nice exchanges and my wallet too was shining and full of the promises he’d made. I even hesitated when a bubble grew around him and he was valued at almost £30 and I was quite happy holding and staking what I’d paid about £17 for. It was nowhere near what seemed to be his value…
… but then one rainy night some nasty little bears escaped and scared the poor little Atom into shedding most of his stars until, utterly crushed, the little he had left was only worth a bit over £2 and it seems that this will be his destiny forever.
He’d promised us the stars and delivered a mirage...
The fact is that most, if not all of us, have been there at some time past or present and it is probably the main thing we want to avoid ever again and for me it has happened three times while being modest with my expectations.
The fact is, and I am opening just a bit of my portfolio here, I bought about 50 (rounded number) for an average of £17 to the total value £850 and since then the price has plummeted to about £2 (again it hasn’t quite gone that low, but let’s keep the figures simple) so it is currently worth about £100 with the recovery value remaining the £17 average – which is well below its ATH.
Should be achievable again you would think?
So here is the question, should I dump it and accept the loss – which is massive – or should I continue to hodl and wait for it to reignite? This is that very crypto quandary we have all faced and honestly I have no idea what to do…
Well, that’s not quite true…
Recent developments have changed things, but whether they are game changing it is yet to see. Very recently (and I have posted on this) Coinbase reintroduced staking on a wide range of assets including Cosmos and so I moved all 50(ish) into a staked pool which is currently yielding 15.2& APY. Furthermore, because of my Celsius disaster I moved everything I recovered from them to staked USDC and I have used $80 from my "interest pool" to purchase more Atom, which at the time of purchase added another 20 to the 50 I was holding. The broad effect of me doing this is that it has driven down the recovery price, previously £17 per Atom to recover £850 to £12.14, Please note within this calculation I have written off the most recent $80 infusion of new funds as this was essentially free having been earned through staked USDC as stated above. Moreover, staking is returning more Atom on a weekly basis with it having the same cumulative effect of driving down my recovery price.
However, is my expectation to at least get my £850 back too high? Should I dump what I have left into another asset and cut my losses (and risk making the same mistake with yet another asset) or hold out in the hope that somehow the coin will revive itself?
And that my friends is the most difficult problem we face in Cryptoland as there are no clear cut answers.
On another note, for those of you who read my post a couple of days ago about my accidental habit, my wife caught me yesterday and I showed her my post on the subject.
As always stay safe and well my friends.
