Every day we see more evidence of the unwinding of the ZIRP, free-money bubble.
Today, it was FTX Sammie Boy being “saved” by peer Binance. Who knows how this really affects Sam but he certainly has suffered a sizable loss in his already inflated net worth. Honestly, I don’t know why any “smart-money” would risk having exposure to this whole thematic. The headline risk alone could drive your business into peril. It’s unknown to me if this is a opportunity for Coinbase to be one-step closer to being the last man standing or if it’s just not their turn yet to be the one in needing of being saved. Trillions of dollars have evaporated thus far, much of it from huge hedge funds and VC funds. Tiger Global has never had such a horrible year and I’m sure theres more issues coming. Where there’s one rat, there’s dozens. Stay away, this one was easy to spot imo, the mania was like all others, huge price appreciation made tens of millions of believers and as they all exit through a narrow door, we realize the only thing they were believers in was the returns. What will happen to this industry if the assets just crawl along the sea floor and don’t do anything but trade within a range and stay hella volatile? Even the die hard believers will finally move on and try to find a new shiny rock. Crypto: a solution in search of a problem!
