$BTC $SOL $ETH Since the cryptocurrency system does not inherently involve real production or net cash flow behind it, it has turned into a zero-sum mechanism that transfers the capital of new entrants to previous investors and market makers.
The primary factors driving the market's evolution into a tool of mass exploitation are as follows:
Capital Transfer Structure: The fictional value created in assets that produce no balance sheet, dividends, or tangible services is funded solely by the money of lower-tier, newly entering retail investors. As seen in Bitcoin, because power resides with the wealthy and state actors, they hold the total supply of Bitcoin and incentivize society toward it through advertisements; the weak lose while the rich get richer.
Asymmetric Information and Manipulation: Insider trading, exchange manipulation, and algorithm-driven leverage operations directly transfer retail investors' liquidity to major players (whales and platforms).
Aggressive Marketing: Advertising campaigns that draw crowds in with promises of unlimited gains attract retail investors with low risk awareness to the market, thereby socializing potential losses.
Lack of Regulation: The unmonitored structure creates a foundation for artificial market movements and fund transfers—which are considered crimes in traditional financial markets—to be executed with impunity, allowing all kinds of fraud in cryptocurrencies to go unpunished and become legitimized.
#Binance @SECGov @CZ #secgov
The primary factors driving the market's evolution into a tool of mass exploitation are as follows:
Capital Transfer Structure: The fictional value created in assets that produce no balance sheet, dividends, or tangible services is funded solely by the money of lower-tier, newly entering retail investors. As seen in Bitcoin, because power resides with the wealthy and state actors, they hold the total supply of Bitcoin and incentivize society toward it through advertisements; the weak lose while the rich get richer.
Asymmetric Information and Manipulation: Insider trading, exchange manipulation, and algorithm-driven leverage operations directly transfer retail investors' liquidity to major players (whales and platforms).
Aggressive Marketing: Advertising campaigns that draw crowds in with promises of unlimited gains attract retail investors with low risk awareness to the market, thereby socializing potential losses.
Lack of Regulation: The unmonitored structure creates a foundation for artificial market movements and fund transfers—which are considered crimes in traditional financial markets—to be executed with impunity, allowing all kinds of fraud in cryptocurrencies to go unpunished and become legitimized.
#Binance @SECGov @CZ #secgov