The about 13,800% upsurge a new decentralized finance (DeFi) got within 24 hours has brought a huge attention for the crypto assets, as the DeFi, christened Barnbridge, saw 140x growths from its initial offering price.
However, the cofounder of cryptocurrency analytics and ranking website CoinGecko, Bobby Ong, seems to have a different opinion about the trend of the digital assets as he urged investors to cash out their funds now.
Barnbridge claims to be “tokenized risk protocol” and the cryptographic project, per its whitepaper, targets offering a new interest rate scheme different from the existing DeFi platforms. Barnbridge will be offering products that have the ability to modify yield into fixed rates, and users will now be able to invest based on their risk crave.
On Barnbridge, interest rate would be divided into risk tranches.
Barnbridge makes use of governance token BOND, used to buy and sell risk on the platform. Barnbridge went live this month, and its native token BOND rocketed by over 13,800% on its launch day as the cryptocurrency moved from a seed round price $1.33 to $185 within 24 hours.
However, Barnbridge claims that the prices of risk on yield are driven completely by the market.
Barnbridge boast of giving users of the traditional market who do not want to have a share of the entire risk curve by possessing, loaning, or accepting an entire digital asset, an attractive opportunity to venture into the decentralized finance industry.
BOND is an ERC-20 standard token, therefore, it can be store and tradable on exchanges and wallets that support ERC-20.
Coingecko Co-Founder Bobby Ong Warns Imminent Tragic Fall
While this is not the first time a newly launched token would be witnessing a dramatic price rise within a short time, many of the assets have in the past displayed that price eruption is nothing but a pump and dump.
Bobby Ong – the co-founder of CoinGecko, has the same feeling about the new DeFi asset, has opined that a tragic fall is underway for the asset. He warned that it was high time investors withdrew their holdings and profit before it is too late.
Next week may be too late!
He explained that after observing the price trend of the Barnbridge since its inception on Monday, he noticed that the asset has made a gaping growth of around 140x from its seed round price. However, he said he expects that next week would see the Barnbridge price fall.
I've been observing @barn_bridge token price since it started trading on Monday morning. The price seems to be going only up and at $185, it is nearly 140x seed round price of $1.33. I am fully anticipating the price to go down next week so do be careful. Thread below 👇
— Bobby Ong (@bobbyong) October 27, 2020
Furthermore, the crypto icon noted that he’s interested in the assets and its approach into the market as well as the distribution of the BOND token. He then said “allowing only farmers to harvest their proceeds at the end of each week” is affecting the market circulation of the token.
Ong proffered that if the approach of per block harvesting after Week 1 is initiated, farmers will estimate their APY and there would be more token in circulation in the market.