Arkius Before You Ape
Investment FOMO and the Risk of “Apeing In”
FOMO Leads to Apeing
The Fear of Missing Out (FOMO) is a widely known term that has become increasingly relevant in the age of meme stocks and cryptocurrency. In addition to the introduction of FOMO into the investment lexicon, the term “Apeing” has begun to take a significant piece of the colloquial real estate within the cryptocurrency space.
To “Ape In” is typically to rush into a financial opportunity with significant investments to capture the value that you anticipate will occur with continued exposure and growth. It’s a knee-jerk response to a potentially lucrative opportunity, usually without having done much background research on the investment.
Apes Don’t Always Win
This act of apeing in has been seen most frequently and notoriously around projects associated with Andre Cronje, the founder of Yearn Finance. As he is a prolific and widely regarded developer, any updates within his GitHub (coding repository) and deployments to the Ethereum Mainnet from his known wallets are watched and monitored with a close eye. Thus, immediately upon release, massive investment commences with various levels of success or failure. Due to a need for testing some protocols in production, robust auditing and review of the code and economic impacts may not be widely circulated. This can create immense information asymmetry about the release. This has created an issue where contracts have failed, tarnishing the brand with disastrous results, such as $15 million being drained.
To mitigate this problem, projects have to either host robust marketing campaigns to inform potential users or restrict access in a way that may not be beneficial to the natural testing of the project. The latter option was used in the recent release of a Fixed Forex solution that restricts access to mitigate uninformed Apeing.
Teach an Ape New Tricks?
You don’t have to! Apeing, particularly in cryptocurrency, represents the democratizing ability for people around the world to identify projects they believe in and benefit from early involvement. But it doesn’t have to be done blindly. Through our unique attention sovereignty filters, Arkius provides the infrastructure to create the right set of incentives to overcome information disparities.
Through the certifications of products/services/code, users will be able to directly filter determine vital information, such as the risk of flash loans, the number of commits, the results of audits and more. By supplying this valuable information quickly, providers will be able to directly generate revenue from to help users “Arkius before they ape.” This creates a virtuous cycle where everyone can win.
