I’d like to say that even though there has been a significant decrease in market capitalization for PRV, the amount of coins removed from being shielded is significantly less. That to me shows, that most people have not lost faith in the project, but instead see less value in keeping their money in PRV.
It looks like May 31st is when people started cashing out of PRV. May 31st was also the same day Liquidity rewards v2 was posted. In my honest opinion, that update killed some utility in PRV and would understandably worry investors looking for profit (which most are). It may not be the direct cause, but I don’t think it helped.
Another thing affecting everything right now is the fact that people are indeed making money moves into crypto. Crypto has been casually going up and down at a consistent rate, and right now I believe large amounts of money are going to be dumped into it. Large companies have been investing heavily in crypto infrastructure. Investors see this as opportunity and are probably liquidating some of their PRV into potentially more profitable crypto.
Is this a problem for Incognito?
I don’t think so. All this situation is doing, is highlighting some of Incognito’s flaws which need to be fixed. Its enough pressure to be noticeable, but not enough to do any real damage. With all this recent growth, it’s important to take a step back and figure out what needs to be done to help the community grow. More voices, mean more concerns.
What can we do about all this?
I think these 3 things could help the cause significantly.
- Add more incentives for providing liquidity (Brainstorm for a solution that works)
- Add more utility to PRV (Create a stronger stable backbone for investors)
- Increase community integration (People trust putting their money in places where they can voice their concerns and be heard)
Right now we are in a perfect position to increase the stability and fortitude of the Incognito network. As more and more people join the platform we need to be more courteous how changes affect them. I understand voting will be implemented in the future, but for now it might be beneficial to have community polls to figure out the best direction to take the network, especially in regards to the problems we currently face.
I think our priority should be figuring out how to provide more utility to PRV while at the same time incentivizing more liquidity providers (Economically, or even functionally). This would be a great foundation to bring in more investors onto the platform. I know that we are coming out with big updates soon that will gain us a lot of attention, but if we are not ready for the influx of users it might be hard to manage it.
Personally I am fully committed to the platform and want to see it succeed, which is why I bring this up. I want nothing more for Incognito then to become a better, much stronger platform. I know it’s not always that simple, but if we strive to achieve the things I mentioned above, I believe Incognito will become just that.
Overall, I think we are in a good position and see great things coming from Incognito, but like always there are some things we need to work on.