Hello Fellow Guard Fan!
If you have been paying attention to the Guard chart, you would have noticed a decline in price for a long while now.
Here’s what happened:
Some token holders decided to never sell their tokens, instead they decided to stake their Guard on the OLA Lending Network and borrow against it. The problem with this was that when you borrow against a volatile asset, and Guard is/was/will be one, you not only pay interest on your loan by the block, but you also stand the chance of being liquidated.
Perhaps they never believed Guard would retrace below $1 after $18.*AHEM*
On 17th of Feb the price of Guard dropped from 0.09 to 0.04 and that was because a large sell kick started an avalanche of liquidations.
Is the Lending network bad is kind of asking is a hammer bad?
Just depends on how people use it.
A lot of the sell pressure lately on Guard came from the interest on the loans & liquidations.
Didn’t help that Binance stopped supporting BUSD as well, the interest rates was over 300% at some point.
Since writing this memo, no more Guard is at risk on the lending network.
Can this be the bottom?
