AAVE governance crisis triggers large holder sell-off, DeFi projects face severe tests of decentralization!
In the past two days, the price of $AAVE has dropped slightly, and the reason for the decline is due to large holders selling off. As for why the large holders are selling, it is because there has been a dispute between the DAO and Labs.
Labs transferred 10 million in profits without the community's consent, claiming it was what they deserved, but from the community's perspective, this clearly belongs to the community's assets.
It seems that TAO is trying to reclaim AAVE's brand-related assets, such as domain names and accounts. A once good project is now facing a governance crisis.
This not only scared large holders into cutting losses and liquidating but also caused others to worry about the future of DeFi. The decentralization experiment that the DAO faces is fraught with significant challenges, and the competition for core assets is the most important.
This issue has not only harmed the AAVE project but has also exposed the vulnerabilities of the DAO. In a sense, the brand resources controlled by Labs are a crucial part of this project, but since decentralization governance has been adopted, why is the control not in the hands of the DAO?
Of course, this is an important conflict, as similar incidents are bound to occur in DeFi projects in the future. Let's see how things develop. If AAVE experiences a significant drop, it might be an opportunity.
In terms of market trends, after a series of small increases in the past two days, it has started to consolidate, which is expected.
In the short-term market, I have a feeling that when market liquidity is poor, a crash hasn't occurred because there are main forces quietly accumulating and stabilizing the market.
In any case, for now, one can start to acquire some, a large crash might happen, but it's not certain.
