In 2022, Three Arrows Capital, a $10 billion hedge fund, blew up from over-leveraged long positions on bitcoin. The founders fled. When creditors came to collect, they found only a few mining rigs humming in the office.
Small exchanges advertised high-yield wealth-management products with daily interest. Many users deposited their coins expecting easy earnings. Suddenly the platform shut down, servers went offline, and all user assets became unwithdrawable, with no way to seek redress.
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A slowly-rising project is not necessarily bad, but a fast-crashing project definitely has flaws.
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Only three certainties exist in crypto: volatility, exploitation, and total-value collapse.
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During Bitcoin forks, many retail investors bet on fork-coin surges and invested heavily. Fork-coins had almost no liquidity and crashed to zero quickly.
A decade or so ago, China's policy of 'not making trouble'was so in line with the Confucian image of ancient gentleness, kindness, courtesy, frugality, and deference. And with Taoism's governance by non-action, a prosperous era emerged. The current situation: no matter what the upper level says, the lower level no longer believes a single punctuation mark. It's like after Kim Jong-un's double meets Putin's double, everyone knows the other is fake and has no authority.
Why can t suddenly skyrocketing coins in Binance Wallet be sold? The highest probability: Honeypot tokens (Honeypot, Pixiu traps), smart contract scams (90% of mysterious skyrocketing meme coins are this type).
Don't borrow money or accumulate credit card debt, otherwise you will become an actor burdened with debt, and the surrounding acquaintance audience will see you wearing an Oscar and playing the clown, laughing happily. You can only experience the hardship when you make money.
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The secret of successful people may be that they rely on small probability luck, but they think they have a high probability methodology. Most of them are lucky fools. Some value investments are just built on sand piles, but they are extremely elaborate on the building itself;
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Whether in crypto or in life, always stay cautious and tread on thin ice; otherwise, one careless mistake can bring disaster not only to you but to your whole family.
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Out of trust, he lent his coins to a crypto-friend for short-term turnover. The friend got liquidated and could not repay. Money was lost, and friendship broken.
He attended crypto offline meet-ups and met many self-proclaimed big-shots . They offered so-called high-quality investment opportunities. Many transferred money, only to discover it was all fraud.
The two cryptocurrency masters who have earned tens of millions are worthy of admiration. What s important is to learn their thinking.
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He bought large numbers of mining rigs at bull-market highs. When the bear market arrived, prices fell below mining break-even, and running rigs meant losing money. Rigs sat idle gathering dust; resale recovered only one-tenth of original cost.
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At the airport, he was asked to hand over his phone password. After he entered it, all data disappeared, including digital currencies worth tens of millions, because the keys were saved on the phone, and not a cent could be recovered.
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