Once USD1 decouples from its peg, even if its market cap is only a few billion and the parent company WLFI is just over a hundred billion, it could still trigger a collapse in the already extremely fragile market—current market sentiment is very weak, and even a small disturbance can cause a stampede.

Fortunately, there are very few projects currently using USD1 as collateral, so chain liquidation risks are minimal, and there’s no immediate risk of a chain reaction of liquidations. However, there are rumors that WLFI is deleting content related to USD1. At this point, this action is very suspicious and warrants caution.

Adding to this, several well-known institutions and major holders have recently started to cut their positions and exit, which is a very clear signal.
The actual holding cost for large Ethereum institutional investors is below 1400, and they are also leveraged. While they are unlikely to be liquidated, there is still room for price drops.

For retail investors:

• If you don’t have strong market intuition, don’t rush to buy the dip; entering now could turn you into fodder for a slaughterhouse.

• Always set your orders low enough; better to miss the opportunity than get trapped.

• If you really want to participate, consider small positions in spot LP for coins you believe in, and profit from intense volatility.

Remember: Money can be made anytime, but only with your principal intact do you have a chance to turn things around.
The next six months are critical. Will it be a bottoming process in a bear market or a deep shakeout? The answer will be clear soon. Hard battles are coming—caution is key, and watching from the sidelines is not shameful. #我在Gate广场过新年 $USD1 ‌$WLFI ‌$BTC ‌