1) People invested their hard earned money into yet another corrupt crypto exchange aka FTX
2) This was then taken to invest in other entities. Not only that but a % was also recycled through a clever form of ponzinomics
3) Being over leveraged spread them thin.Insolvency became a real threat. Eventually guy 1 asked guy 2 for a loan and to not dump the reserve tokens given on the open market for fear of price depreciation of said token.
4) Guy 2 said “ F*%k that, heard you were talking shit about me. I’m dumping, THUG LIFE bitch” and BOOM the price of said token dumped
5) People saw this and panicked. Started selling to save themselves. Eventually the truth behind this exchange’s business model was revealed and people selled even harder
6) This exchange happens to be the biggest supporter of Solana which unfortunately happens to be another VC backed low integrity network: shuts down multiple times, fake transactions, open video of devs laughing about their shady tactics, CEO not really caring about users
7) One last thing about SOL. Yesterday about 1B worth was initiated for unstaking. SOL and Co panicked knowing people would want to sell them to preserve capital. What did they do? Stopped the unstaking to save their own asses. centralized
8) We have yet to see how this plays out but it doesn’t take a genius to understand more blood will be spilt. In fact it’s fair enough to argue 99% of cryptos won’t be here 5-7 years from now. Why? Lack of proper fundamentals and crappy tech.
9) With that being said the lessons here are simple: DYOR, don’t follow the crowd, use critical thinking, but most of all- learn from this experience. Until next time 🕺🏽💸This post is based on this twitter thread.