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Crypto Research

Decentralized Social Media is a BS

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Elon Musk just trashed Twitter again. And he is reluctant to buy Twitter. He claimed Twitter has a more vast bots population than human beings active in space.

The recent court documents released many discussions and conversations between billionaires and what they thought before acquiring a company.

Elon planned to turn Twitter into blockchain social media because he thought the blockchain was a solution to prevent bots and spammers since the blockchain was created to fight email spammers in earlier days.

But his plan did not go well.

First, Elon got soured with Parag Agrawal, who later became CEO of Twitter.

Elon thinks Parag is just an a**-kissing CEO to please everyone.

Later, he refused to get a lecture from another Billionaire CEO of the crypto exchange FTX, Sam Bankman-Fried, about how to make Twitter a blockchain social media.

Elon Musk suddenly disliked the idea of Twitter, killing all bots and turning Twitter into blockchain social media. 

What just happened?

Here is what I think is why he just turned around suddenly.

Killing bots is unprofitable

Twitter without bots is unprofitable anymore. Those bots can easily influence the opinions of viewers in the Twitter space.

Twitter is fighting hard, but more bots will likely be created and push more spam.

Blockchain Social Media is unprofitable

Yes, blockchain kills bots, but it makes social media becomes useless. Social media is a propaganda tool that spreads misinformation and disinformation. If social media loses its power to spread “the good news”, why do people bother to use such a tool?

Cost of fighting bots over profits

Twitter will have an existential crisis when bots are more than they can control that outweigh the profits Twitter can bring. That is when the end of the social media era. Rather than using blockchain to make the purposely computation speed goes slow, AI is an excellent tool to categorize bots and eliminate them. However, there will have spammers AI to fight the good AI later.

Twitter is unprofitable business

The more bots on Twitter, the less profitable the Twitter business will be. Twitter has to find a way to eventually reduce the increase of the bots and consistency have enough users in the space. One solution is to use a real identification verification process, which is also a privacy concern for many Web3 community raise concerns. 

Another way is using the NFT identification process to prevent bots enrollment, but people can use multiple wallets to register the platform, which is another future problem.

In conclusion

Blockchain social media is a contradictory idea.

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Crypto Research

SBF is lying in front of the internet

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He is lying again in front of everyone.

SBF has no ethics…

Trying to play dump and not know anything wrong is the opposite of letting people know you are a total screw-up.

IF FTX US is solvent, why you filed bankruptcy in the first place?

All he tried to do was indirectly point questions to his achievement, which is to scam people and use their funds for his own purpose.

FTX US is insolvent and he has not authority to present himself into FTX US anymore.

Likely money from FTX US were removed to cover all other expenses…

I really wonder if SBF has any backup documents to prove himself.

He is a straight liar…

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Crypto Research

How did crypto go wrong this year

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As we approach the end of this year, everyone is still digesting the impact of the Internet-driven digital transformation in business and its associated headwinds. As a result, many businesses are looking ahead to the future with mixed feelings. On one hand, we have come a long way in building trust and self-awareness in our digital landscapes. On the other, we now have to acknowledge that some of these digital transformation efforts have been misguided or backward-looking. These are all good things—but they do not mean 2022 will be a great year for crypto. 

It’s hard to know what to take away from this year.

More crypto companies were bankrupted from Luna to 3AC to FTX and lost investors’ money. This is a classic ponzi scheme in which everyone misued users’ funds and steals to hedge their high risky bets, eventually leading to the collapse of everything. Crypto itself has nothing to do with all these business models of stealing people’s money, and it is a way they advertise and bring FOMO to people and lure their money into the space.

Everyone is working toward their own digital currency

While cryptocurrency is not done yet, countries have been tested their own CBDCs. It is a crypto-like digital currency without privacy. However, it can be a saver choice for many people to adopt.

Lesson Learned

What have we learned from this year? We need to go back to the fundamentals of crypto. Transparency, privacy, and permissionless are keys to making crypto unique. When crypto is suddenly worth ten folders, we abandon the fundamentals and chase money, making us vulnerable to scammers. We need to rethink why we joined and believe in crypto at the first place.

Conclusion

Crypto will be used in financial services. It will also likely find use in both the financial market and in the form of insurance eventually. In fact, insurance providers may be the first major players to embrace digital insurance—and this may include a blockchain-based platform. The ecosystem will vary from company to company, but most will have an online platform that facilitates the digital purchase, sale and management of coverage across multiple providers. However, to screen out bad actors before such adoption is a key to making crypto sustainable in the future.

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Crypto Research

How to crypto lending is dead

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Crypto lending is dead? What will replace it? How to get started with crypto lending? A recent FTX detailed the decline of crypto lending as a viable option in the wake of trust breaches. While crypto lending is still in infancy but its potential for misuse and potential conflicts of interest does not address the question why users funds kept being misused. We’ll explore why and how cryptocurrency lending has become such an toxic part of modern digital finance. We’ll also discuss some ways you can continue to use crypto and avoid crypto lending in all costs.

What is crypto lending?

Crypto Lending is a way for people to create money out of thin air! The technology is similar to borrowing money from other investors, but whoever runs a crypto lending business broke the trust and misused users’ funds to bet for high-risk venture capitals that lost all money that they can no longer pay off all funds they owed. The idea is that you, as the lender, create a “virtual” loan to someone else, usually with a small amount of collateral (fractional reserve). You then use the money to put into high risky investments from that person or pay for them with virtual dollars out of thin air. The “lender” loaned out of your money to help them potentially leverage high-risky bets and use your money to gain their profits. Lenders can even trade against your investments when you long the assets while they shorted the assets to double dip the profits.

Why does crypto lending no matter anymore?

There are no benefits to using a crypto lending option at all. Not all crypto lenders can provide transparency about their assets-backed reserves and are likely running fractional reserves with thin-air fake tokens to boost their own valuations. When they go bankrupt, their will file bankruptcy protection to protect their assets and liquidate all their crypto to defend themselves to go total losses. You are likely to receive a fraction of the money while they can preserve their assets that gained profits from your investments.

How to cryptocurrency lending is dead

This is the most common question we get: “How is crypto lending dead?” The short answer is that there are no longer viable financial solutions. 

2022 is the year large crypto lenders went bankrupt, from Celsius to FTX to BlockFi, all those companies are lied about their reserves and likely misused users’ funds for their own betting.

Damages from crypto lending

All bankruptcy gave one question about crypto: why did people lie about their businesses and violate their promises? The false assumption that crypto is always valuable is a problem and they use FUD and FOMO to lure investors into their questionable lending services and misguided users with their suspicious advertisements. Regulations are nothing to protect investors in crypto.

Conclusion

The future of financial products is uncertain. There is no one way to interpret the new year and get a clear perspective on what will happen. There are so many different scenarios and potential outcomes that it is difficult to predict. That being said, there are several scenarios that are very likely to come to pass. It is important to remain alert and participate in the ongoing financial market activity. If you are considering using a financial product, always research the product and make sure it is both legal and tax-effective. You also need to consider your personal financial situation and potential future expenses. That said, crypto is speculative, and crypto lending will not work.

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