2025-12-23 13:25:41

Speaking of the XRP yield program, many are attracted by the annual interest rate of 4%-10%. But we need to calculate this clearly.

The earnXRP launched by Flare seems to be a financial management scheme, but in essence, it is building a liquidity ecosystem. The problem is that in this market, it is quite normal for XRP to fluctuate by 20% in a single day. You focus intently on that little annualized return while ignoring the risk of the cryptocurrency price itself - it's like picking up shells while a tsunami is approaching, a losing proposition.

Looking at it from a different angle, having a large amount of XRP locked in a staking contract can actually be a good thing for some participants. What they desire is more liquidity flowing in, making it easier to sell at high prices. By the time that little bit of interest you’ve been longing for arrives, the coin’s price may have already halved. When you calculate it, this deal is really not worth it.

In the cryptocurrency market, preserving capital is the top priority. Instead of being greedy for fixed returns, it is better to pay more attention to market trends and risk points. Don't be blinded by high interest rates, or you might end up getting fleeced.

XRP-0.95%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

14 Likes

Reward
14
3
Repost
Share

Comment

0/400

ProofOfNothing

· 12-23 13:46

The metaphor of picking up shells after a tsunami is spot on; I'm just the kind of sucker who gets played. --- No way, a 4% annual yield can be wiped out by a 20% big dump; no matter how you calculate it, it's not worth it. --- Honestly, the happiest ones in these staking plans are the market makers, while retail investors are just dumb buyers. --- Capital preservation is the key; don't be fooled by that little interest, or you'll end up in the negatives. --- It’s always like this; what seems to be a stable yield plan always ends up being a big pit. --- XRP is fluctuating so wildly; do you expect to make money just by lying around? That’s quite a wishful thinking. --- I've said it long ago, the liquidity ecosystem is just for high-level dumping; why are there still people jumping in? --- If the coin price can fall by 50%, what can your interest offset? --- In the end, it's always the Large Investors that benefit from this kind of staking; retail investors shouldn't join the fun. --- I need to remember this metaphor of picking up shells; I'll use it next time I advise someone.

View OriginalReply0

SerRugResistant

· 12-23 13:35

To be honest, the 4% interest really doesn't compare to XRP's daily fluctuations; I've seen through this trap long ago. This is just a Liquidity Trap, retail investors are tempted by those little profits, while Large Investors are already rubbing their hands waiting to dump. Principal safety > Returns, this principle needs to be thoroughly understood. Don't be fooled by annualized rates; interest becomes meaningless when the coin price suffers a 50% Slump. The real logic of making money is to go with the trend; don't be greedy for fixed income, which is just an illusion.

View OriginalReply0

0xSleepDeprived

· 12-23 13:31

It's the same old story again, a 4% interest rate can't withstand a coin's plummet, really. --- The metaphor of picking up shells during a tsunami is brilliant; I am that shell person. --- Lock-up position is just the prelude to playing people for suckers, I've seen through this long ago. --- By the time the interest arrives, the coins are already gone, laughing to death. --- Capital preservation first, this statement is not wrong, but unfortunately most people can't take it in. --- High interest rate? I only see high risk, no thanks. --- Flare's liquidity ecosystem is, to put it bluntly, a dumb buyer manufacturing machine. --- The ones who get clipped are always the greedy ones, including me in the past. --- Staking = finding direction to dump coins, I believed in this logic.

View OriginalReply0