I have seen PRV drop from nearly about 2 USDC over the years to 0.15 USDC right now . Just trying to understand why is this gross devaluation happening . Is it because of supporting staking so new PRV is always getting created and supply outstripping demand . Any perspectives are appreciated . may be we are over diluting prv ?
The same amount of coins get mined whether more or less people stake. That doesn’t affect anything. PRV has a fixed supply over 40 years.
My guess is the devaluation is due to lack of marketing and efforts by the growth team. The devaluation (from actually $3.30+) to where it is now, started when the growth/marketing team was fired and they only focused on development for over a year. Supposedly there is a new growth team, but I have not seen any worthwhile ventures on that end. Seems like nothing tangible is being done to promote/expand incognito awareness. Because of that, less people use incognito, lots of liquidity was pulled by people, and it has never come back.
With the low liquidity, lack of marketing, and no more pNodes for sale… the PRV price has plummeted to $0.15.
I really wish they would bring back the old team that did such a good job 2 years ago.
I don’t believe that is a fair assessment.
The graphs don’t fully show the magnitude of the drop across the crypto industry. DeFi went from a peak of 172 billion down to where we are today at 46 billion - 126 billion drop. Altcoin market cap peaked at 1.7 trillion and is now currently at 676 billion - ~1 trillion drop since 2 years ago.
With that being said, Incognito has been hit hard lately and I personally attribute this to shaky market conditions and FUD around privacy coins.
I’ve spoken with the growth team and we have some plans in the works. We should have more on what is planned later this week.
It would be great if an action plan be made by the project teams to evaluate this issue and have some consensus among the community (with their ideas) to stabilize prv . Sounds to me there are some issues here that probably need some brainstorming
Assise the price drop, Wich was very painful, if you’re looking around on the DeFi, incognito has a good advantage among other players: the app is incredibly simple to use. That’s a huge advantage. It’ll help us to inboard newcomer who aren’t especially tech savvy, that was the downside of DeFi early day. Plus, as long as you earn PRV you can trade and send coin without figuring out which native coin you’ll need to pay the fees. On advantage of incognito network, a bit underseen: BTC, ETH, XMR offramp - onramp to DeFi. To need to swap BTC for WBTC. Like Jared said, they’re trying to implement fiat onramp - offramp. Good idea as well, since Mount Pèlerin seems like a good option, I just discovered Holyheld, seem easier to integrate on the PRV ecosystem, even though, you’ll need to pass KYC to get a virtual card. On low volume Mount Pèlerin is KYC less. Here’s my pont of view. Incognito team has made an incredible Work as getting the TX more speedy, the tech behind everything more stable. Now it’s time to welcome new users.
The reason for the token’s devaluation is basic economics. If there is more people wanting to buy PRV then sell with the available supply at that time then the price goes up. If more people sell then buy than the price goes down. So the question is really why are more people selling then buying and the answer to that is simply becuase people see the devaluation of the token and trade PRV for something else they see as having more value or a better chance of increasing in value over time. Without having any data to back it up, one reason price could be going down is that majority of people running nodes probably sell their PRV rewards. If they were keeping them then PRV would probably be going up instead. Could also be that there are simply too many tokens being “printed”. One way to combat this would be for the core team to burn tokens but I dont believe there is a mechanism for that here yet.
This is not just something that happens here but in Defi in general and in some national economies. Some countries print too much money and devaluate their currency. Getting this right is not something anyone can do. In some extreme cases like Zimbabwe and Venezuela this same principle of oversupply will lead to hyperinflation and wipe out your whole lifes savings. Just the way it is.
It’s absolutely the node operators selling the coins for something that can be used, combined with the lack of marketing. 21-40% rewards isn’t enough to keep up with how fast the coin is being devalued and PRV has little use other than a reward, so there will always be higher sell pressure driving the price down.