Why Volatility Management is Critical on Web3 Platforms
Web3 platforms are transforming the digital economy by using blockchain technology to create decentralized financial systems. However, one major challenge they face is price volatility—the rapid rise and fall of token prices. Managing this volatility is crucial for building trust, attracting investors, and ensuring long-term success. Without proper liquidity and risk management, many Web3 projects struggle to survive. At the early stages of a Web3 project, token liquidity is often low. Liquidity refers to how easily a token can be sold or bought without impacting its price. If liquidity is low, even small trades can cause major price swings, making…