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The Hidden “Bad Debt” Narrative Risk
This is probably the single biggest medium-term threat to $JUP sentiment.
Imagine:
lenders aggressively fund meme/NFT loans
market crashes
collateral becomes impossible to sell
defaults spike
lenders lose heavily
Even if:
the protocol technically works perfectly
the market narrative becomes:
“Jupiter loans are toxic.”
That matters because crypto sentiment is reflexive.
A few viral bad-loan stories can:
damage trust
reduce usage
reduce TVL
hurt JUP multiples
even absent protocol failure.
This is very different from swap aggregation.
everyone was right
bitcoin maxis were right: eth is going to zero
ethereum maxis were right: btc is going to zero
solana maxis were right: L2s are going to zero
L2 maxis were right: sol is going to zero
zcash maxis were right: xmr is going to zero etc
we are all very smart
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