5 Cryptocurrencies Redditors Will Never Buy Again

4. Aave USD (CCC:AAVE-USD)

Market Capitalization: $1.374 billion

Aave USD (CCC:AAVE-USD) is the native token for the open source protocol Aave. The protocol is used to form non-custodial liquidity markets that allow users to lend and borrow crypto assets amongst themselves in exchange for interest. The protocol launched in November 2017 as ETHlend and rebranded as Aave in September 2018.

Aave USD (CCC:AAVE-USD) has lost 74% of its value since its peak in mid-September last year. The decline of Aave USD and other cryptocurrencies like SushiSwap USD (CCC:SUSHI-USD) has caused the bankruptcy of notable crypto lenders like Celsius and Voyager. Celsius Network had to pay off its debt of $63.5 million to release its collateral of 400,000 Lido stETH USD (CCC:STETH-USD) from the Aave platform. Celsius Network filed for bankruptcy on July 18 and started freezing withdrawals from June 12. Meanwhile, Voyager stopped withdrawals from July 1 and filed for bankruptcy on July 6. Hundreds of letters have been released by judges to the public during the bankruptcy hearing of these crypto lenders. These letters highlight the financial distress caused by the bankruptcies and how customers have been financially ruined.