Crypto Fast Food 🍟
How Terra Luna REKT Crypto?
How Long Can This Bear Market Last?
😂 Twitter Memes of the Week
Crypto Fast Fo🍟d
FTX STRIKES A BAILOUT/BUYOUT DEAL TO SAVE BLOCKFI. FTX offered the Crypto Lending Platform a $400M revolving credit with the option to buy them out for $240M (formerly valued at over +4B) 🔥💰
BlockFi came into trouble after loaning Singapore-based, gambling company “3AC” over $1 billion dollars; word on the street is that Three Arrows Capital has now filed for Bankruptcy 💸 💣
They blame debt insolvency from the “failure of Three Arrows Capital (3AC) to repay a substantial loan from us.”
Alameda Research, a firm owned by Sam Bankman-Fried, said it would extend a life-line of credit, ~$500 million.
Michael Saylor, the notorious Bitcoin GOAT, buys another $10m worth of bitcoin. MicroStrategy purchased 480 Bitcoin for at an average price of $20,817. The company now owns 129,698 BTC, ~3x more than Tesla.
OpenSea, the largest NFT marketplace, announced a major data breach. Per the platform’s statement, an employee of Customer.io leaked a list of OpenSea customers’ email addresses to an outside party. The company stated,
“If you have shared your email with OpenSea in the past, you should assume you were impacted.”
On the heals of the data breach, Alex Atallah, the co-founder of OpenSea, has also announced he is stepping away from the company.
Coinbase adds Solana staking rewards to their platform. Users can earn passive yield as high as 4%.
HTC & Polygon have launched a new, Ethereum-based metaverse phone called “Desire 22 Pro.” The phone comes with a built-in digital crypto wallet and a virtual reality (VR) headset pairing feature.
👜 Built-in digital wallet: Manage Tokens & NFTs on Ethereum & Polygon
😎 Virtual Reality. Built-in app will offer an immersive metaverse experience without needing a VR Headset
How Terra Luna REKT Crypto?
2022 will go down in history as Crypto’s Bear Stearns & Lehman Brothers moment — aka, 2008 Financial Crisis.
In less than a year, overnight start-ups had instant success, quickly becoming *titans* of industry; and then, in spectacular fashion, they crashed & burned faster than Amber Heard’s acting career. In the past 3 months we saw:
Terra ($60B peak) — May 🔥
3 Arrows Capital ($4B) — June 🔥
Celsius ($1B+ ) — June 🔥
BlockFi ($4B+) — July 🔥
What happened?
Basically, Do Kwon (founder of Terra Luna) started a fight with millionaire degens who were frankly smarter than him. On Twitter, after mocking his detractors, Do Kwon openly invited them to attack Terra Luna. 🤷🏻♂️
A month after that now infamous Tweet, Do Kwon’s Terra was exposed to be a house-of-cards doused in kerosene. 🃏🔥
What started as a small attack, triggered a massive, elephant-like stampede of people trying to pull their lifesavings off Terra. More than $60B dollars was quite literally vaporized overnight. Poof. Gone. Adios. 💸
That one domino then started a nuclear chain reaction.
For example, 3 Arrows Capital reportedly lost $200M—$400M on the Terra Collapse.
However, instead of taking it on the chin, they went full Clark Griswold in Vegas Vacation, recklessly borrowing not millions, but rather BILLIONS with the hopes of making up those losses. 🎲
Borrowing from companies like Voyager & BlockFi.
Unfortunately, the music stopped, and the market saw a 70% correction. $1B dollars was promptly extinguished.
Sadly, 3AC was gambling not with their own money, but with money from retail investors.
Retail investors like Scott Melker. On his podcast The Wolf of All Street, Melker said that he “had millions” tied up on Voyager’s trading platform and is unsure if he will ever see that money again. 🤬
…Not your keys, not your coins!! 😵
How Long Can This Bear Market Last?
Firstly, no one has a crystal ball. 🔮
However, the general consensus from industry veterans people like — Chamath Palihapitiya, Jason Calacanis, David Sacks & David Friedberg — is that this may last for YEARS.
From a recent “All-In” podcast, they said that there are 3 big things going on right now:
High Inflation & Rate Hike Unknowns 📊
Economic Slowdown, “companies slamming on the breaks” & depression fears 💸 😵
Overhang of War in Ukraine » threatens to become a forever war 💀💣
They believe we are at the beginning of the beginning. Like… we are at the opening pitch at a baseball game, the pitch thrown before the real game starts.
“These next 3 months, I think we are going to see very hight inflation prints, high in part because rents which are on a lag are going to be folded back in [to CPI]. So we are going to be printing 8-9%,” explains Chamath.
Their advice?
Cash is King. 👑
Keep as much of it as possible & look for good deals. 📲
Chris Dixon of A16Z recently wrote a blog post “Toys, Secrets, and Cycles: Lessons from the 2000s.” In it, he explains how product cycles & tech builders actually boom during recessions. For example,
“Apple released the iPhone app store in 2008 and by 2009 talented founders were pouring in. The mobile app revolution was in full swing. [And] Almost all of today’s top mobile apps were created by companies founded between 2009 and 2011, including Uber, Venmo, Snap, and Instagram. From a startup perspective, the 2008-11 era turned out to be a golden age.”
DISCLAIMER
THE VIEWS AND OPINIONS EXPRESSED BY THE AUTHOR ARE FOR INFORMATIONAL PURPOSES ONLY AND DO NOT CONSTITUTE FINANCIAL, INVESTMENT, OR OTHER ADVICE. BLAH, BLAH, BLAH, BLAH…