Very good Newsletter From The Pomp.
I think Pomp here had a point.
FTX debacle, which came too close to the LUNA/UST drama, is a harsh call on the whole system.
Something everyone reading this forum should already know. There is Bitcoin, then there is crypto.
But in the crypto Far West it was difficult for everyone to keep the bar to straight , for everyone.
- Users Yet once again. “Not your keys, not your coins”. How many times do you have to be reminded doing a good risk assessment, when deciding who is handling your private keys
Please note the at I am not against Bitcoin custodians per se, I am against poorly chosen custodians”, whose category is often identical to “exchanges”
- Investors: lured into dubious projects following even more dubious APY or “risk free yield”. Check this thread to clarify what happen when you think you are getting a risk free yield. Hopefully they now understood where the real value is, and where allocate their assets.
- Exchanges: instead of focusing on crystal clear operations, regulations and service for clients, setting up convoluted tokenomics schemes, in the best hypothesis out of levity on unintended consequences, but often in dire fraud Hopefully this will lead to a refocusing on that matter the most for their clients (the users, not the governments -Check this thread). Many exchanges have already said are going to significantly improving their operations and transparency adding proof of reserves, as a first step
- Developers: instead of focusing on the development of the intellectually rewarding projects (namely: Bitcoin and Bitcoin related Technologies) , they indulged financially regarding projects. Hopefully many dubious project in this sphere will see a drain in funding over the coming months
- Regulators: The long tide of these events will be a flurry of new regulations to ban, regulate, oversee the whole crypto industry. I don’t know if they will be successful, the risk of killing a nascent industry is high, but i guess they now know they need to understand the industry better. And maybe this is good for all of us.
If you really are an investor then you need to be constantly adapting and adjusting to new information as it becomes available. It doesn't matter if you're invested in gold, wine, crypto or stocks - sometimes you just have to take a step back an re-evaluate everything that attracted you to it, then identify if anything has changed. There will be a small crowd of people who genuinely put little thought into their buying and just saw "line is going up on the chart, I want to jump in". Those people did no research other than feeling greedy and thinking they had an easy way to make money. Others have bought with conviction, used only small amounts of spare funds and are happy to hold wherever the price goes. That type should hopefully secure their crypto in off exchange wallets.
