DeFi Winter — Is crypto dead?
A lot of you will probably be up in arms about this hot take: we should have seen this massive pullback coming.
Kids were yolo-ing their stimmy checks into shitcoins while teenagers were trading pixelated apes and becoming overnight millionaires.
If you had invested $1000 in Satoshis when Matt Damon’s famous “Fortune favors the Brave” pitch debuted for crypto.com, today you’d have less than $400. If you bought BTC around all-time highs, as FOMO-ers tend to do, you’d now have 66% fewer dollars invested than you once had. It’s science.
Volume is down. To encourage BTC trading, Binance has dropped its fee structure for BTC trades and is trying to stimulate trading in a zero-fee zone.
Ironically, one of the biggest crypto bulls and the largest publicly acknowledged holders of Satoshis is asking for essentially the opposite of DeFi. Michael Saylor, the CEO of Microstrategy (and maybe unconfirmed close Satoshi Nakamoto relative), is now calling for increased regulation for a basket of predatory crypto practices.
Dubbed the parade of horribles, Saylor says that the government needs to step in… and basically centralize regulation for decentralized finance? It’s unclear what he means, but I see through it: when the industry’s “baggage” is inconvenient, call in the government to clean house.
It’s the same idea with the Energy industry. If you don’t like carbon footprints and fossil fuels and greenhouse gasses, get the government to regulate it until it’s more convenient for your agenda.
Most non-crypto bros only can name a few popular DeFi assets: BTC, ETH, Doge, and of course, Poo and ASS coins.
BTC has fallen more than 70% from its ATH, and literally, 100s of other coins have lost 99% of their value in the same time. Even some of the top ten coins by market cap have lost 80-90% of their value.
Watching tech investors lose 50% of their wealth this year seems like a good deal when you watch crypto bros lose 90%. And when compared to inflation, an 8% haircut seems like a bargain!
There is definitely a place in this world for blockchain. Will it define Web3.0? IDK, don’t look at me.
But I do know that all winters eventually come to an end, even if your winter turns out to be a f*cking crypto ice age.
Happy Friday, apes.
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