Brain dump from one of the craziest weeks in crypto history ๐งต
1/ Crypto is anti-fragile.
Every project (except BTC and ETH) is still fragile.
Even the top projects have only been around for ~3 years.
BTC and ETH remain the kings.
Every project (except BTC and ETH) is still fragile.
Even the top projects have only been around for ~3 years.
BTC and ETH remain the kings.
2/ Bigger industry = more funding = bigger consequences.
UST at its peak was ~$19B. Luna was ~$40B.
Bear Stearns was $25B at its peak. Lehman $60B. Enron $65B.
We'll probably see a $100B blow up next cycle.
UST at its peak was ~$19B. Luna was ~$40B.
Bear Stearns was $25B at its peak. Lehman $60B. Enron $65B.
We'll probably see a $100B blow up next cycle.
3/ Algo stables are REALLY hard. So hard that people should think long and hard before doing them.
Terra had all the right people + backers and they couldn't pull it off.
In the next bull we're going to see another huge algo stable. People are quick to forget lessons learned.
Terra had all the right people + backers and they couldn't pull it off.
In the next bull we're going to see another huge algo stable. People are quick to forget lessons learned.
4/ We should support founders who push the edge of innovation. Everything in crypto was just a dream at one point.
However, when a founder becomes aggressive at any pushback about their project, we should be cautious.
However, when a founder becomes aggressive at any pushback about their project, we should be cautious.
5/ Don't punish people who call out risks in the system.
6/ This should be obvious to everyone but we are in a bear market. And that's okay.
Crypto's best projects have come out of bear markets.
Crypto's best projects have come out of bear markets.
7/ Entrepreneurs will build us out of this bear.
8/ The most important thing to do in a bear market: survive
Focus on your people. Focus on your best products. Focus focus focus.
Do whatever it takes to survive.
Focus on your people. Focus on your best products. Focus focus focus.
Do whatever it takes to survive.
9/ Avoid leverage.
This space can move 50% in a week. Lever up and it's over.
This space can move 50% in a week. Lever up and it's over.
10/ When shit hits the fan, everyone wants a bad guy to blame (in this case, a lot of fingers were pointed at Citadel).
More times than not though the truth is boring. There's usually not a big, bad evil firm hiding behind malicious trades.
More times than not though the truth is boring. There's usually not a big, bad evil firm hiding behind malicious trades.
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