Anything can happen in crypto now…
SBF still are walking free despite $10B missing from his crypto exchange. He will give a speech on Nov. 30th…
What he will discuss then?
How do I blow up $10B but survive, or how do I save crypto with only $500M margin calls?
Crypto has been detached from its original mission.
Transparent, trustless, and permissionless are deja vu now.
Transparent becomes questionable third-party audits.
Trustless becomes trust me bro vibe.
Permissionless becomes make investors’ money hostage.
Some could argue that they are all within centralized crypto exchange.
But the fact is centralized crypto exchanges played major roles in mainstream adoption, and there is no way one will ignore them to move crypto forward.
Yes, there are many decentralized options of crypto, and they have yet to be tested.
Of course, I am not rooting for a centralized crypto exchange, but you do not expect 70 years old grandma to have a private wallet and hold it with her own private key at some ledger drive around the house. You still need crypto services to help people who are not digitally native.
That is where centralized crypto exchange comes to play a crucial role.
However, regulations fail in the FTX incident to protect users.
What we have learned is to hold your own wallet and continue pushing centralized crypto exchanges to become more accountable.
We cannot trust anyone to protect our own funds, but we ask collaboration between centralized crypto exchanges and users to protect assets with contracts that cannot be immuntable and permissionless.
I think the crypto industry has to move toward accountable technology that performs due diligence to human operations, providing secondary safety to prevent bank runs and the exchange of withholding users’ funds for hostages.
If any crypto services cannot meet the standard of users’ protections, users should not put their funds in their hands.
Users’ funds’ protection is a priority.
SBF is lying in front of the internet
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…
How did crypto go wrong this year
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.
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.
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.
How to crypto lending is dead
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.
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.
- Crypto News1 year ago
Kryll (KRL), LCX (LCX) SUKU (SUKU) and OriginTrail (TRAC) are launching on Coinbase Pro
- Blockchain1 year ago
DeSo Announces $50 Million In Funding for Developers
- Blockchain1 year ago
DeSo | Decentralized Social Media Network
- Bitcoin12 months ago
Simple Analogy Explains How Bitcoin Works
- Crypto News1 year ago
Unpacking The DESOlaters with William Laurent
- Blockchain12 months ago
DeSo : Decentralizing Social Media Apps
- Crypto News12 months ago
Multichain Metazens Emerged In The Metaverse
- Blockchain1 year ago
How to Get Free DeSo Crypto