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In the Crypto Assets market, the potential price pump of WalletConnect Token ($WCT) has sparked widespread follow. Assuming the price of $WCT reaches $10, this would far exceed its current $1.16 ATH, making it the focus of the market. In light of this situation, investors may adopt different strategies to respond.
First, investors who adopt a strategy of taking profits in batches and dynamic adjustments may divide their holdings into three parts. About 30% of the holdings may be cashed out immediately when the price reaches $10 to lock in profits. An additional 40% may set a trailing stop loss, for example, exiting when the price falls below $8. The remaining 30% may choose to hold long-term, betting on the future development of the WalletConnect protocol.
Secondly, some investors may choose to stake their tokens and participate in governance. Although the annualized yield for staking $WCT has reached as high as 85%, investors need to be cautious of the risks brought by inflation rewards. If the project team can optimize the economic model, reduce inflation, and increase actual returns, staking may become a stable source of passive income. Meanwhile, participating in governance voting may help enhance the long-term value of the tokens.
Third, some investors may choose to reinvest profits into early projects within the WalletConnect ecosystem. This may include supporting its multi-chain expansion plans or investing in decentralized applications developed based on the protocol to create synergies.
However, it is worth noting that if $WCT reaches 10 dollars, its market capitalization will be close to 10 billion dollars. Whether this valuation has enough ecosystem support needs further verification. Currently, WalletConnect's annual revenue is only 2 million dollars, which is a significant gap from this potential market capitalization.
Investors should closely follow the token unlock schedule and potential adverse factors such as pressure from competitors like MetaMask when making decisions. At the same time, they should also consider the risks brought by market fluctuations. In the crypto assets market, price volatility is a common phenomenon, so it is crucial to remain cautious and rational.
Regardless of the strategy adopted, investors should formulate an appropriate investment plan based on their risk tolerance and investment goals. In a high-risk, high-volatility market like Crypto Assets, diversifying investments, setting stop-losses, and constantly following market trends is a wise choice.