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Crypto Research

Modern Economic Nonsense — A journey of money laundering



When UST collapsed, the founder Do Kwon promised the community to revitalize Terra through a new proposal of Terra 2.0 that serves the community solely. But the project looks more and more like a money laundering 💸.

What has been gone wrong 🤔?

Money laundering 1️⃣0⃣1️⃣

There are three stages of money laundering:

1️⃣ Placement

You received cash from illicit activities and spread the total amount into small individual amounts to convert into cash or any legal investments.

2️⃣ Layering

Once the transaction has been completed, the funds are blended into the legitimate funds and become a part of the financial system.

3️⃣ Integration

Once multiple transactions have been completed, the funds integrate into the financial system without a possible traceable footprint. It marks the end of the laundering process. 

Terra 2.0

Do Kwon is playing a game called “where is my money.”

He started with the placement, in which he rugged pull users before the market crashed. 

Then he follows the layering in which he puts money blended with Bitcoin and tries to revive his new money through Terra 2.0.

He knew that people would sell Terra 2.0 once they received airdrops, so he was ready to sell while convincing new buyers to purchase at the high price level. It is the so-called “buy high and sell low.”  

In the end, he and his team probably recovered from the loss, while many other users lost more than they could possibly be. 

The problem of Terra 2.0

The same problem exists in Terra 1.0, no transparency and no decentralization to prohibit founders from making unilateral decisions to fix “the problem.” 

⚠️ The founder is “the problem.” 

And he was doing money laundering. 

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Crypto Research

Say no to FOMO



Do not FOMO into crypto. This is the rule that prevents you from becoming a bag holder.

ChatGPT suggested that FOMO is:

FOMO stands for “Fear Of Missing Out.” It refers to the social anxiety or feeling of regret over the potential missed opportunities, experiences or social events that others are enjoying or participating in.

You will see every social media platform where people shilled their crypto portfolios and told you how you missed the train.

This is not true.

Remember, there is never missing out of the train in the crypto because it is inefficient to sustain at the peak level for a longer time.

Rather, it will go down every time without problems.

You should do your research carefully and exam around the market sentiment.

When everyone says you are missing out, it is a time that the market is about its peak and hype.

You need to stay away from the social media and observe to see how the market performs. 

When everyone says the crypto is not more extended work, you should prepare to see how it may prepare itself to come back.

It is not always the case, but it usually works this way.

Do not influence by the social media shiller but trust your research!

Photo by LJ Lara on Unsplash

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Crypto Research

Crypto is a good investment or not



Many people buy crypto to believe it is a great investment. However, it may not be the case.

I asked ChatGPT about the crypto investment and here it is:

Investing in cryptocurrency can be a good opportunity, but it also comes with high risk and volatility. It is important to thoroughly research and understand the cryptocurrency market before investing. Additionally, it is recommended to diversify your investment portfolio and not to invest more than you can afford to lose.

Here are some misconceptions:

First, crypto is not a traditional investment that requires a conventional way to invest. Instead, it is a catch-or-miss investment that you really need to time the market to make profits.

Second, you do not need to hold for too long if you need money quickly. Crypto tends to perform badly long term than average assets did.

Third, high risk only sometimes has high rewards. Many crypto with high risks may not ever provide high returns eventually and many go to zero instead.

Last, do not go FOMO because you are likely to become a bagholder.

There is not missing out and it is too late in the crypto. Rather, you should always keep an eye on the market.

Photo by Jon Tyson on Unsplash

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Crypto Research

Mother of all bubble



We are heading into a bubble economy and there is one that is about to pop.

ChatGPT suggests that a financial bubble is:

A financial bubble is a situation in which the price of an asset, such as a stock or a commodity, becomes artificially inflated due to excessive speculation and investment. This can lead to a situation where the market becomes overvalued and eventually collapses, resulting in significant losses for investors. Bubbles can occur in a variety of different markets and can be caused by a number of factors, including low interest rates, economic growth, and investor sentiment.

Let’s take Tesla as an example.

Tesla CEO is Elon Musk, who purchased Twitter last year and believed the company can help Tesla to make more profits.

Does it? Or he tried to inflate Tesla instead?

If you go to Twitter, there is less opposition than a supporting voice.

Elon Musk sells Tesla cars and Tesla stocks.

People purchase cars to help pump the stock price and when stock price goes up, people want a new Tesla.

Despite all the bad reviews about the car and its questionable autopilot feature, Tesla cars sold quickly and stock goes up no question.

Is this a Ponzi scheme?

Similarly, cryptocurrency is also highly speculative.

It goes up a time to time, but people buy the narrative without further investigating how useful the crypto really is.

What if people stop buying the crypto, will that still go up?

What if the economy is so bad and the interest rate is high that people have less money to buy more crypto?

We will see how it goes.

Photo by Pawel Czerwinski on Unsplash

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