On October 11, Alon Muroch (Israeli origin), founder of the Ethereum staking infrastructure project SSV Network, posted on social platforms that he had been drafted into the army and that the situation he described was worse than the actual situation. The situation was very not optimistic. This news quickly attracted widespread attention and discussion in the blockchain community.
SSV Network team’s response
Immediately afterwards, A. Matthias, global business director of SSV Network, posted a message on the social platform in both Chinese and English, stating that the entire team was operating normally and that the incident had made the entire SSV community more united. Despite this, the person in charge of the SSV Network project came out to speak to stabilize investor confidence. However, these efforts cannot stop investors from selling their project token SSV.
SSV currency price fluctuations: Today, the SSV currency opened at $15 and has continued to fall since then, falling as low as $13, a drop of 13%. Currently, SSV has counter-drawn, quoting $14. According to TradingView data, since June this year, SSV has maintained a range of 13-20 US dollars, while 13 US dollars is a strong support and has been tested by short sellers three times without falling below.
So, will this incident cause the price of SSV to continue falling below $13? This is the focus of investors. Although many blockchain projects are decentralized and highly independent, they are not as highly dependent on founders as traditional centralized projects. However, despite this truth, investors are still very dependent on the founder psychologically. For example, after the founder of Litecoin left, the price of LTC plummeted.
The impact of founder changes on the market
Similarly, the uncertainty of war will increase the uncertainty of the development of the SSV Network project and seriously undermine investor confidence, which is especially dangerous in a bear market. Therefore, once the founder has something to say or there is a problem with the project operation, it is very likely that the SSV currency price will break through the strong support of $13.
Risks of blockchain projects: In addition, from the fact that the founder of SSV Network was drafted into the army, we must be wary of projects related to Palestine and Israel. They are invisible landmines at the current stage and may explode at any time. If you want to conduct short-term investment transactions, try to choose high market value currencies such as BTC and ETH to reduce the high risks that may be brought about by special periods.
Investment advice: In the current market environment, investors should be more cautious, especially for projects closely related to the geopolitical situation. High-market capitalization currencies such as BTC and ETH are relatively low-risk and suitable for investment in such periods of high uncertainty.
in conclusion
The news that the founder of SSV Network was drafted into the army undoubtedly had a huge impact on the market, and investors' confidence in the future of the project was severely hit. Although the SSV Network team works hard to stabilize the situation, the volatility of SSV currency prices will continue in the short term. Investors should be more cautious at this time and choose relatively stable investment targets to reduce risks.
In summary, this incident once again reminds us that although blockchain projects are decentralized, the movements of the founders and core teams still have a profound impact on the projects. Investors should always pay attention to these developments and fully consider these risk factors in investment decisions.