Enjoy this crypto disillusionment

Enjoy this crypto disillusionment

Friend, have you ever felt disillusioned?

When Daisy leaves and throws herself into Tom’s arms, Gatsby’s American dream is over.

He didn’t win Daisy’s love in the end; no matter how much wealth Gatsby had, no matter how many lavish banquets he threw, trying to integrate into high society, he still couldn’t cross the social class gap…

” So we went forward, but like a boat against the current, we are destined to keep going back to the past .” The last sentence of “The Great Gatsby” always makes people want to cry.

UST de-anchored, LUNA plummeted by 95% in one day, and the altcoin market’s one-day correction generally exceeded 30%…

After experiencing the prosperity of “Tesla buys Bitcoin”, “El Salvador uses Bitcoin as legal tender”, and “Traditional VC ALL IN WEB3”, the crypto market has also ushered in a moment of disillusionment.

” It was just a dream, I was still very moved after I woke up for a long time.” I couldn’t help but start to RAP.

On the eve of the 2007 financial crisis, then-Citigroup CEO Chuck Prince famously said, “ When the music of liquidity stops, things can get complicated. But as long as the music is playing, you Get up and keep dancing. “

A month later, this magnificent movement came to an abrupt end, marked by the bankruptcy of Lehman Brothers, the financial tsunami swept the world, the market collapsed out of control, and the stock market continued to plummet.

 On May 5, 2022, the Federal Reserve announced to raise interest rates by 50 basis points. Five days later, the UST broke off, and the “crypto Soros” behind the scenes ushered in an excellent sniper moment.

A “stable legend” with a market value of up to 40 billion US dollars collapsed in this way, and the crypto world is not “too big to fail”.

The damage of the UST thunderstorm to the market consensus is not only to stabilize this track, but also to the entire altcoin investment logic, especially those VC Coins with high FDV.

” Luna, the leader of the cottage, has fallen. How many others are stronger than Luna? “

In 2020, 312 is the liquidity contraction of Bitcoin, and 510 is just the “jumping show” of cottages.

The new public chain, the time machine (the application of the Fork Ethereum ecosystem to the new public chain), the calculation stability… These narratives have all fallen into the “cold palace”, not to mention that the big players in the primary market are also beginning to run out of food.

One of the biggest takers in the crypto market, Tiger Global suffered losses of about $17 billion in this year’s tech sell-off, one of the largest dollar losses ever for a hedge fund.

Tiger’s more than 40 investments in the field of encryption can only be described as “charity”.

Jump Crypto, once the big winner in encryption last year, is now throwing it all back. Facing the predicament of UST, he wants to save his life, but he has more than enough energy.

The once thriving first-tier semi-market (OTC) has become a meat grinder for VCs. It is conscience to only drop by half. It is more benevolent than 6 yuan for VCs to take over, and now it has dropped to 0.4.

As for the primary market, it is a meat feast for “TO VC”. The valuation of 1B is more dreamy than the “market dream rate”, but there are still VCs who pay for the dream.

Under FOMO, there is no end to the egg.

Previously, traditional VCs who shouted “All in Crypto” and “All in Web3” were very silent at the moment. In addition to contributing new material to “VC top (traditional VCs will run when they shout All in)”, some people While lamenting, “Unfortunately, the WEB3 fund raised in Singapore has not yet been raised”, some people are hesitant and frightened, “This market is too dangerous, or I’d better slip away first”…

To be honest, I don’t want them all to run away. In order to appease their emotions, I plan to write an article “Don’t Let Traditional VC Run” (Don’t Run, Fellow Hometown) to give them a psychological massage.

The UST thunderstorm has hit the market sentiment, but I can be sure that the crypto frenzy will sweep again. In the next few decades, Crypto will still be Alpha, but it must have a different narrative logic.

Crypto directly benefits from the global “financial populization” and “the Federal Reserve’s big water release”. In the long run, these two points are irresistible historical trends. At a time when de-globalization is accelerating, Crypto is the only license-free “Noah’s Ark” connecting the global market.

If I want to reflect, I think that in the past, practitioners in the encryption industry put too much energy on the “economic model”. Various types of Ponzi dolls in the name of innovation emerged one after another, and they were addicted to them, but in essence they were still in the Add leverage.

For example, we have publicly praised Luna for its ability to capture value.

When the music of the Federal Reserve stops, Crypto or WEB3 (Crypto’s vest) really needs to consider two things “out of the circle” and “positive externalities” in order to achieve long-term healthy development and be recognized by the mainstream.

Every bull market cycle will have a new narrative, and new crypto heroes will be born, poised for new waves while enjoying this crypto disillusionment.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/enjoy-this-crypto-disillusionment/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

Like (0)
Donate Buy me a coffee Buy me a coffee
Previous 2022-05-12 00:00
Next 2022-05-12 09:25

Related articles