What we need to finally start realizing as an industry and as users is that crypto needs to abide by and be covered by regulations.
There are tons of amazing usecases, many of which are actually being built. But because of the absence of regulations and a culture that has embraced hatred against anything regulatory under the mantra of decentralization, the real usecases do not get the funding or attention.
It continues to be the hyped scams, pump and dumps, airmile token. Nothing has changed in that regard from XRP over EOS, ADA on to APT & SUI. Not even mentioning all the small scam projects. Smart, unethical people like SBF, CZ, Barry or Brad preach to uneducated masses.
And there is nothing that stops them. People follow them like heroes till it is too late.
The place is so full of scammers that it leaves only one conclusion: crime pays. In this world you can scam to the tune of billions. A few weeks later a new scandal will get the headlines.
Brad Garlinghouse, Justin Sun, Julian Hopp, Dan Larimer, Su Zhu, Do Kwon, Sam Bankman-Fried, Avi Eisenberg… all of them committed clearly illegal offenses. None of them are in jail. All of them are filthy rich or put away 10m or so somewhere.
Is that the world we want to build?
Without the rule of law the only thing these criminals need to do is wait out six weeks till the attention shifts to the next scammer. SBF is now waiting and, surely, Tether or CZ won‘t disappoint and run the next scam to the ground soon. Then we can all be angry with them.
What‘s even more absurd, I‘ve said it before, are the voices saying Defi is the answer 🤡.
ICYMI, Defi has experienced a multimillion hack every other week, but here people responsible are often anonymous.
Even greater incentive for crime. Much worse.
Besides that, DeFi currently offers returns that are not even close to the risk assumed. You get 3-4% on US federally insured bank account guys. That is risk free money. Why would anyone in their right mind accept 3% on a stablecoin like the tether scam with smart contract risk?
Makes no sense. I have also said before that I believe some innovations from DeFi like truly global organizations and decentralized equity are important to safeguard and support.But these will only flourish in a regulated environment.I hope we finally embrace this as a community
Instead, to me, it still seems that most people would rather get their moment of glory when they pull down 5-10m from an exploit/rug and not care about anyone actually using their products. Decentralization is a useful characteristic. But it does not justify all means.
The only product that actually has a use atm, next to bitcoin itself, is tornado cash. And again the outcry is large: the poor dev is in jail but all the ones I mentioned above are not.
That is true - this is completely f‘cked. But it does not mean tornado isn‘t criminal.
Without it, most hacks would be hard to get away with on a public ledger.
Also, I don‘t believe the devs should be in jail for coding open source software.
However, for selling a security token, that might be a different story. Equivalent of selling money laundering services.
Anyways. It is high time we as a community start to embrace regulations. That also means not to allow people like CZ to get away with the hypocrisy of whitewashing binance. They skirted regulations for the longest time. Everywhere. This crooked system is just as much their fault
As for prices, it‘s always very hard to say when they bottom. I think we have seen a capitulation event. The problem is that with binance and especially tether still available to fail and give it all the death sentence, there are ample things to worry about.
Before FTX I thought that we would go down to 12-14k in bitcoin and then start a recovery pretty quickly. Now I think that, while the bottom isn‘t far away and might even have happened, the recovery will be slow. crypto has to now bring a new useful product to its users.
Defi is dead (for the above reasons) till it gets cleaned up, embraces regulations and especially offers an attractive relative rate of return.
NFTs are a product of monetary excess and need to be used for other things than JPEG trading.
I for one think the real use of the ledger technology will be decentralized identity and the ability to truly own your data. ID, money, search history, credit cards, health insurance, ordering at amazon… all that could be done securely, owned by the users. Hopefully we‘ll see it
Of course, if the Fed prints money again, all assets will rise in value again. But, pause or no pause, the Fed is pretty far from that at the moment.
As for myself, I try to never „believe“ in anything. Believing is too much of a religious activity.
I do remain fully committed to the space though and I look forward to see it evolve. I will do all I can to help it evolve in the right direction.
All this is opinion. No advice
As an addendum, here are my thoughts on regulation.
I really do think the SEC and the Fed (regulator of the US Dollar) f‘ckd up. I called them on tether and binance in 2018. On UST in 2021. But nothing.This post is based on this twitter thread.