“Crypto casino”: a new channel for the bottom group to turn over
It’s hard for me to figure out exactly how I got to crypto Twitter (often referred to in crypto circles as “CT”), and the crypto-focused Telegram (TG) or Discord channels that have been lurking since last summer explain.
As a journalist, the subject of my daily writing is not limited to one field. I also occasionally write about novels and films, and I have previously written stories about the intersection of health and the criminal legal system.Personally, I don’t seem to take the initiative to write stories about cryptocurrencies.
However, for quite some time in the past, confidence in the cryptocurrency market has been high, investors are buying, and prices are soaring. Every time a cryptocurrency skyrockets in value, major media outlets start reporting headlines about impossible wealth.
The mother quit her job to devote herself to the cryptocurrency space and create “generational wealth.” Now, she earns $80,000 a month.
The 33-year-old “Dogecoin millionaire” is now all about cryptocurrencies inspired by Internet memes, and he continues to buy Dogecoin on dips.
Cryptocurrency is an almost unavoidable topic. My longstanding professional interest in our elusive financial market mechanism, and now my personal interest in the topic, has driven me to continue to learn more about the field.
At first, I thought the field was a little dirty and a little shameful. People who enter this field have only one purpose, which is to make money. It still feels out of place to explore this topic in my wider professional and social context.
However, as my interest increased, I no longer had any thoughts of losing face. I’m spending more and more time learning about the field, even flipping through the channels on the subway or before going to bed at night. It’s the kind of peep that only the internet allows, giving you an almost 360-degree view of a subculture that doesn’t quite relate to you.
Over time, I’ve become familiar with the way crypto-obsessed communicate, for example, abbreviations of phrases they often use include: gm (Good morning), wagmi (We’re all gonna make it) , ngmi (not gonna make it won’t work), and hfsp (have fun staying poor).
I learned to distinguish between swing traders, cryptocurrency speculators and speculators by the way they speak and post. I’ve also found subcultures that exist within this subculture (like “Bitcoin maximalists” stressing that Bitcoin is the only cryptocurrency, “Ethereum maximalists” claiming that Bitcoin is just crypto for baby boomers currency), and how they express their allegiance to a cryptocurrency through their avatars (usually, Bitcoin maximalist avatars have lasers out of their eyes).
In a small group, they also maintained some kind of self-care habits, such as some Bitcoin maximalists eating only meat, others resisting the use of seed oil, sunscreen, ice on wounds and touching receipts.
Writing about financial markets tends to be more extreme. There is now a hopeless and mysterious description of market volatility, in which many puzzling concepts are reduced to some abstract language, and reports of personal stories are often read. In reporting on the cryptocurrency market, it’s often described as stories of people gaining big fortunes through shit luck in a bull market, and then losing all their wealth.
Lurking in these groups also gave me another perspective. Some of them lead extraordinary lives with unique needs and desires, buying and selling cryptocurrencies in an attempt to overcome their emotions, greed and fear.
In some cases, these people are not wealthy people who want more wealth, they just want to trade cryptocurrencies to make themselves successful in areas they have previously been excluded from. They call each other “family”, congratulate those who make money, and feel sorry for those who get ripped off, making me feel like they’re not rivals on the trading floor.
The longer I’ve been in crypto, the more I think it’s a place that reflects all of our economic problems.
“Crypto Chip”: A Token That Turns Over
When I started thinking hard about cryptocurrencies last summer, I actually had preconceived notions in my head. A lofty vision of a transparent and fair financial system has largely been replaced by a public cult of desire.
When it comes to the “fundamental potential” of cryptocurrencies, one might think of cartoons of Silicon Valley hype and fitness nerds who like to pose in front of luxury Italian sports cars and show off their Rolex watches in high profile. (Sometimes, a day’s worth of money in the cryptocurrency world can be equivalent to a year’s return in the stock market.) Most of what I know about this part of cryptocurrency is serendipitous from the Internet or from the news.
It soon became clear to me that cryptocurrency was no longer a precise term enough to describe a range of projects under this category. It’s not just the occasional meme coin of Bitcoin and Ethereum, but thousands of projects and corresponding tokens, most of which have nothing to do with the ambition to replace the dollar as the world’s reserve currency.
In a nutshell, every project is built on top of the blockchain, known in crypto circles as the “settlement layer” or “layer 1.” Ethereum belongs to “layer 1”, as do blockchain networks such as Terra, Avanlanche, Solana, and Cosmos. Each layer 1 has its own currency or token that can be used to pay for transactions that take place within its ecosystem.
There are two main ways to obtain these tokens: either through a centralized exchange, such as an exchange where day traders trade foreign exchange or stocks; or on a blockchain network, through a decentralized exchange .
Each token has its “community” of loyal holders who gather on a particular project’s Discord or Telegram channel to discuss the roadmap, ask questions, or complain about the price of the token (“Why is it down?” “What situation?”), a complaint that can be seen almost at any time.
As a bridge between the project team and the community, administrators usually share and update various information for everyone. For some projects, community support is somewhat akin to religious belief in that the piety displayed does not seem to be commensurate with the project’s returns.
For that, you can imagine Amazon-run Telegram channels where thousands of people who buy Amazon stock come together to make friends, cheer on a new service, or give company reps a big thumbs up when they don’t respond well enough. Yell. While this is an unlikely outcome, in the cryptocurrency space, the impossible can become possible.
Through these online channels, I discovered that every token and every project has a so-called hype cycle, or “narratives” as they are commonly known in crypto circles.
The last four months of 2021 will be dominated by non-fungible tokens (NFTs), projects associated with the words “Metaverse” and “games”, “layer 1”, and a range of communities Owned a decentralized financial application called “DeFi 2.0”.
Aside from trading, the main strategy people rely on to make money is to spot the latest hyped concept, pre-empt it, then move on to the next concept, always staying ahead of the curve. If you look closely at the data, you can see the massive movement of money from one speculative focus to the next.
As for who is leading the hype of these concepts, it is naturally those online celebrities in the currency circle (otherwise who else?). Some of them have real skills and knowledge, have at least traded experience in previous bull markets, and have over time attracted a wave of wisdom on how to achieve portfolio growth and how to buy and sell followers. Some even share free popular science content to help everyone manage their risks (such as limiting risk to less than 1% of all investment portfolios).
However, there are also quite a few who appear to be professional marketers who are employed by an organization to market specific tokens to their followers. They buy the token at a low price, or they get paid for the token, and then promote the token when the price goes up. When its followers buy tokens, they have the opportunity to sell their tokens at a higher price (buy and then sell).
Typically, they use social media platforms including Twitter, YouTube, Instagram, and TikTok, and some use private Telegram and Discord channels. If you’re new to the field, it may not be easy to tell the difference between “shameless” and “well-meaning people.” But in general, Shameless usually posts a lot, giving people all kinds of hope. For example, “Bitcoin always rewards those who are patient.” “I hope my 950,000+ Twitter followers who follow me will become crypto millionaires this year.” etc.
In all legitimate projects, there are outright scams too. It is also the norm for developers to remain anonymous, and anyone can easily build a pool of tokens and liquidity that can be traded in a decentralized manner use these tokens.
The creators of “Squid Game,” a game that makes money while playing, borrowed the name and design of a popular Netflix series on the streaming platform, including “Only one person will survive in the end.” Set the ending.
Buyers of the game-specific token, Squid Gaming Token ($SQUID), found their holdings were nearly impossible to sell. In less than a week, the squid game token has skyrocketed, rising by more than 110,000%.Then, to everyone’s surprise, the creators cut leeks wildly, and disappeared completely after sweeping $3.36 million.
Post anything on Twitter with the names of widely used cryptocurrency wallets such as MetaMask or Trust Wallet, and phishing bots will appear posing as relevant support staff. Unsuspecting people who are hooked can be contacted by private messages, and the crooks will immediately convince them to hand over their seed phrase. Fraud all funds in the wallet through its seed phrase.
Most of them are the bottom group who want to make quick money and live a good life
These findings are basically in line with my expectations. But what I didn’t expect was that in this encryption circle, I actually found many people of ordinary backgrounds of all ages, some just becoming parents for the first time, some specializing in taking care of elderly family members, and some even teenagers. They are all eager to make a good living by making quick money. None of these people is the group I imagine sitting behind a multi-screen trading device or trading assets in a portfolio.
Many people get into cryptocurrencies with the hope of making money because they have no other option.They are very hard financially, don’t like their jobs, feel the whole system is rigged and there is no way out.There are people who live in countries that have been at war for years and are desperate to leave, or have left, but desperately want to help family members who have not left.
From the cryptosphere, they can see hope for the future and think that they have the potential to change their own lives, or that they can change the lives of others:
I only have $100 to invest. My wife mostly stays at home to take care of the kids, and I mostly support my family from a full-time job. On weekends, I also do part-time delivery to earn some extra money.
Just because you have a very good life does not mean that everyone else can live a good life. I am a girl studying in college, but I also need to take care of my whole family at the same time. I’m not here to complain, I’ve fully accepted where I am. I’m patient and I’m trying to grow my only $83.The field itself has given me a lot of motivation.
I’ve always been stressed about my portfolio, but today all that stress is gone. I saw three people die, two of whom were close friends of mine. After being shot four times, I escaped safely. I was only interested in making money, and I never imagined that such a thing would happen to me. From now on, I will cherish life more and spend more time with my family and friends.
I am 17 years old. If I stay and work in my country after college, I can only make up to $100 a week.
I can’t wait for my manager to eat shit and walk away like a boss.
I came to Kabul (the capital of Afghanistan) a few days ago and I was struck by what I saw here, many children were starving and their parents were forced to beg from others for a piece of bread. I did my best to help them, buying rice, cooking oil, flour, clothes and blankets for many families, but my strength alone was still negligible. I would like to create a crowdfunding link, but as I am in Afghanistan this is not possible at the moment. I implore you to pray for everyone here and help them financially if you can. You don’t have to be a Muslim to feel the pain of Afghans, you just need a touch of humanity to feel it.
If I only have $10, is it enough to get into the cryptocurrency world?
Most of these expressions of frustration (and even despair) are from the US, UK, India, Turkey and Afghanistan. The countless other messages I’ve seen come from people living in a wider geographic area.
Affected by the new crown epidemic, many people have lost their jobs and been forced to stay at home.Against this backdrop, it also makes sense to a certain extent that many are looking to cryptocurrencies to make up for their volatile income. All you need is a smartphone. This is especially true in countries with relatively weak currencies.
In the Philippines, for example, but also countries like Venezuela and Brazil, people are playing a game called Axie Infinity, a virtual world inspired by Pokémon Go. , because playing the game is more lucrative than other forms of employment.
During the game, you can earn digital assets, and you can also cash these assets into local currency. It is worth noting that the value of the local currency is also fluctuating.
In August last year, someone wrote on a Discord channel, “In our Philippines, the epidemic often leads to lockdowns. Many people are working hard and trying to make money by playing games. Even the most trusted financial advisors Now it is also promoting game tokens, such as AXS coins, SLP coins and SKILL coins. Many people are crazy about it because it can really make money.”
In Manila, the capital of the Philippines, many people are playing the NFT game Axie Infinity. Image credit: Jam Sta Rosa
Dissatisfaction with wages, working conditions and work-life balance is likely to intensify in regions where unemployment levels are starting to fall from their peaks during the pandemic.
More than 4.5 million Americans quit their jobs in November 2021, up from 4.2 million in October, a phenomenon also known as “The Great Resignation.” A similar phenomenon exists in Australia, Germany, the UK and other countries. This may be more of a reshuffle, as people who choose to quit are looking for better jobs, or work for themselves.
In the U.S., however, the labor force participation rate remains below pre-pandemic levels and has barely changed. At least 4 million people have yet to return to the workforce.
So it’s not hard to see why, in a rich country like the United States, many workers are still treated unfairly, with not only low wages and long hours, but also extremely precarious jobs.
Even those who have materially better jobs feel unfulfilled, as David Graeber wrote in an article, “They are They spend their entire lives performing tasks that they secretly think they don’t need to accomplish.” This view is also reflected in his book “40% of the work is meaningless, why are you rushing to do it?” “(Bullshit Jobs) book central idea.
Dissatisfaction with working conditions can be seen everywhere in a subreddit of social news site Reddit called “Refuse to Work.” More than 2 million users who subscribe to this subreddit have posted about their grievances with their employers, shared their stories of working overtime, and offered each other moral support. In this subreddit, many users refer to Graber’s book as one of the core knowledge bases of this forum.
Speaking to the Financial Times, historian Benjamin Hunnicutt noted, “We might feel that if our lives were not dominated by the richest and served their interests If so, then we may have another option.”
In China, there is a similar phenomenon – “lying flat”, many young people choose to resign to protest “966” working days).
But the point is not that people are giving up menial and exploitative jobs for cryptocurrency, but that many hope that they can afford to do so, but only if they have enough money. And it is precisely because they want to make more money that they enter the cryptocurrency space.
The hyper-masculine traits of most day trading groups, where the main profit strategy relies on technical analysis, is a direct indication that the majority of cryptocurrency traders are men. But in channels that focus on DeFi or collect NFTs, the main focus is to analyze the fundamentals and whether to enter the project as soon as possible, and the user avatars show that there are also women, or at least those who do not object to the use of female anime characters online to represent their own people. (However, since most people are anonymous, there is no way to know the truth.)
Still, I was surprised to learn that, according to NORC, a research center at the University of Chicago, 41% of cryptocurrency traders in the U.S. are women. I would have expected it to be lower and thought that most investors were younger than me, mostly in their 20s, but in fact the average age of these investors is 38, not too far from my age, I can’t help but want to reflect.
It was at this age that I began to find it increasingly difficult to contain my anxiety about financial vulnerability. From that perspective, the appeal of being able to turn $100 into $1,000 in a matter of hours or days, not years, to fill a financial gap or deal with an emergency financial situation, is less difficult. Understood.
Since the channel I entered had participants from all over the world, I completely dispelled the assumption that the cryptosphere was almost entirely white, like Tesla CEO Elon Musk, After all, similar rhetoric exists in some of the rhetoric surrounding cryptocurrencies that I have heard before.
Even in the US, the numbers seem to paint a different reality. The NORC study also found that 44% of cryptocurrency investors are people of color (compared to 35% in the stock market), and 55% do not have an undergraduate degree.
In the U.S., people of color have lower average incomes than whites, are more likely to be heavily in debt, and less likely to be able to afford a home of their own. Only a fraction of America’s $130 trillion in wealth belongs to them. This is in line with what I’ve read on the channel: people are there because they don’t feel like they have much opportunity to grow.
Risk and benefit coexist
When I dug deeper, I also found some humanized reports about the stats behind them. In December, The Washington Post reported on the twins Penelope Lopez and America Lopez who invested in crypto The currency has successfully rescued its immigrant parents from financial distress.
In that report, the author cited Cliff May, founder of the National Policy Network of Women of Color in Blockchain and appointed by former U.S. President Barack Obama to a key position in the U.S. Department of Commerce. Cleve Mesidor’s point of view introduces you to the allure of cryptocurrencies.
“When you’re left out of the system, when you don’t have access to generational wealth, you see it as an opportunity,” Macido said.
In September 2021, Time magazine reporter Janell Ross attended the Black Blockchain Summit at Howard University, writing an article after her. In the report, she described the nearly 1,500 “black cryptocurrency traders, educators, marketers and market creators” in attendance as “a group that seems to have mushroomed during the pandemic, surrounding this group of black Americans. come together with the idea of the prosperity we need.”
The authors also mentioned risks in this area. Whether the risks outweigh the potential rewards, however, remains a hotly debated topic.
The risks of entering the cryptocurrency space are worth noting. Is replacing an exploitative and exclusionary system with an inherently fragile and unpredictable system a remedy for the system, or just a reflection of how worthless it has become?
Statistics are currently unavailable on how many people have lost money in the cryptocurrency space, but for inexperienced investors, a great deal of the danger may not be apparent.
Some risks are related to security and lack of consumer protection; some even manipulate prices with so-called “Moby Dick” (i.e. exchanges, accredited investors, market creators, and individuals that hold large amounts of cryptocurrencies) They can control the price of cryptocurrencies at will; (unlike traditional finance, there is no relevant entity in this field to oversee market manipulation strategies, such as wash selling, pumping, selling, etc.) Short squeezes and pulls, etc.) Others are related to cascading liquidations, in which large institutional sells (or buys) induce a large number of forced sells (or buys), resulting in many individual accounts It was finally cleared.
Faced with these potential risks, exchange platforms often fail, leaving individuals unable to log into the platform and therefore unable to take action to protect their funds.
Additionally, there are risks associated with holding future “dead coins”. The so-called “dead coins” are those tokens that were valuable at the beginning but were later abandoned by their creators. Of course, some abandonment behaviors are not necessarily malicious behaviors.
There’s also the risk that, like the dot-com boom, the speculative bubble will eventually burst, and you could become a “leek.” In a broader context, equal opportunity for participation looks like equal opportunity to be wiped out.
Photo credit: Omar Marques/SOPA Images
“The leek that was tricked”: the dealer is always the ultimate winner
I keep reminding myself that the moment we are in now is a kind of reverse mirror image of when Bitcoin first launched. We are once again living in the aftermath of an economic crisis, this time largely caused by the Covid-19 pandemic. In the United States, the Fed has to be mentioned.
Only, we are facing a markedly different situation: growth is relatively high (not low), unemployment is relatively low (not high), and wages have risen by the most in 20 years. These are all signs that the U.S. economy is still dynamic. But the problem is that this dynamism is now overshadowed by inflation.
U.S. home purchase prices have surged nearly 20% over the past 12 months, a rise that, according to one economist’s estimate, will cause working-class families who were close to homeownership before the pandemic to re-save Five to ten years.
Prices of meat, poultry, fish and eggs rose by about 12.5%, fruit and vegetables by about 5% and electricity prices by 6.3%. In such a situation, it’s hard not to feel a sense of failure. Despite the news of rising wages, the situation for people with average incomes is actually worse than it was a year ago.
When inflation occurs, it requires the intervention of the Federal Reserve to bring inflation under control. The dedication and passion that the crypto community has been following the Fed’s activities makes me feel like they’re watching football rather than a central bank.
The acronym FOMC appears frequently on Discord and Telegram in the days before the scheduled meeting of the Federal Open Market Committee (FOMC) or Fed Chairman Jerome Powel’s press conference. On the channel, they appear almost as often as they call each other “bro”.
I also noticed that almost everyone outside the US is very comfortable with the concept of “dollar imperialism”. By contrast, if you live in the United States, you may not notice this easily.
As Powell began to signal that the Fed was about to end quantitative easing and raise interest rates, a sell-off in riskier assets followed in the U.S. stock market. Relatively speculative sectors of the market, such as technology stocks, began to tumble. And when the cryptocurrency market also started to sell off, many in the space were taken aback.
Federal Reserve Chairman Jerome Powel. Image credit: Brendan McDermid
Those who truly believe that cryptocurrencies exist outside of our financial system will have to face a paradox:the recent bull market appears to have been driven by government stimulus and loose monetary , the so-called bull market also appears to be coming to an end.
In addition, there is a related inconsistency in which banking giants including BNY Mellon, Goldman Sachs and JPMorgan Chase are all starting to market cryptocurrency products to their clients. Bank of America even has a cryptocurrency research unit.
A recent survey of 100 hedge fund managers around the world found that by 2026, executives expect their portfolios to hold an average of 7.2% in crypto assets; in the U.S., the average is even higher, at 10.6% . At the same time, venture capitalists have also been investing in the cryptocurrency space: in 2021, its total investment has reached a staggering $32.8 billion.
The wealthy art world, such as commercial galleries and auction houses, is already monetizing NFTs. In addition, this year’s “Super Bowl” is also known as the “Crypto Bowl” because of all the cryptocurrency-related advertisements that make viewers watch with gusto.
In December, a crypto influencer tweeted that “they have kept wages so low that people now have to gamble on the food chain through the market.” The text is so sad, But it’s also very real and undisguised, but I’m more worried that maybe the worst is yet to come.
If the Fed starts raising interest rates, making it more expensive to borrow, that will discourage employers from investing, slowing the economy and possibly even sliding into depression. Either way, unemployment is bound to rise, which means that the working population will have less bargaining power for higher wages, and less purchasing power, until eventually prices stabilize and reflect that.
This is also a strategy to force the working population to “pay”. But so far, higher wages do not appear to magnify the inflation problem. In sectors with higher inflation rates, high wages are often the cause of high inflation, according to a study by the Economic Policy Institute released in January. At the same time, major corporate chief executives are touting rising stock prices and wildly optimistic profits to their shareholders, using inflation as a cover.
According to a recent earnings call from Minnesota Mining and Machine Building Company (3M), “The team has done an excellent job of driving product prices. The price increase for our products increased from 0.1% in the second quarter to 1.4% in the third quarter. %, and then to 2.6% in the fourth quarter.”
All the while, casinos beckon. But we all already know how it will end. We all know that the bookmaker is always the ultimate winner.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/playerunknowns-battlegrounds-some-discoveries-in-the-undercover-crypto-circle-trilogy/
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