Oh, No! Crypto Is Dead (Again)!

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Written by

Pantera

Bitcoin Is Cash

1 year ago

Topics: Cryptocurrency

Centralization Fails - The Strong Networks Will Rise Again

We expected and often talked about the collapse of crypto companies (Celsius, BlockFi, FTX) and the demise that would follow their preferred centralized Ethereum clones, but our warnings are barely visible inside a cataclysm of advertising, thousands of shills, and narratives.

Anyone in this field for a few years knows about the failures of crypto exchanges, and the high-risk custodians pose.

From Bitcoinica to MtGox, Bitfinex to Coincheck hacks and scams reign supreme in centralized platforms.

Still, new threats appear with custodians acting as digital banks to "store" our crypto wealth while delivering promises of guaranteed returns.

We had the Bitconnect Ponzi collapse in 2017, but many selected to ignore the red flags in the 2020-2022 Ponzi schemes.

The yield of CEXs and CeFi (which CZ labeled) was not that high to consider these operations a Ponzi scheme, however, the structure and fractional reserves these services use created similar unstable conditions.

Is this the end of cryptocurrency?

Price Manipulators Collapse One After Another

(Source: Wikipedia, public domain)

Amid the collapse of unstable Ponzi schemes, we watch the panic unfold.

UST, Terra-Luna, Celsius, FTX, and BlockFi crashed the crypto market with their collapse, and more will follow.

Are the networks affected, or perhaps we witness centralization experiencing failure and decentralization thriving?

We watch the bad guys getting rekt today, not the networks.

The working and time-tested networks will only come out of this stronger.

The prices are always temporary. Those that will never recover are the centralized vaporware, the exchange tokens, and the stablecoin-CBDC testnets.

Don't fool yourself. Most (if not all) PoS networks are centralized. I have bad news for anyone promoting BSC, Cardano, Polygon, Solana, Matic, Avalance, Fantom, etc.

The bear market is already cleaning up the scams, the vaporware, and the unstable Ponzi schemes. And that's a good thing for cryptocurrency.

Maybe with the next adoption phase, fewer people will get caught in the web of custodians, although the influential social media personas will have to do their part with this.

Binance, Coinbase, Tether, and Blockstream, are not anyone's friends.

Sure, Bitcoin in its BTC version with Segwit and sidechains leaning towards centralization is not the answer.

The VC-backed networks fall one after another.

Solana, Avalanche, Polygon, and other centralized ETH clones drop significantly as those that supported them are already collapsing.

Final Thoughts

The risk increases exponentially for anyone not controlling their private keys.

Cryptocurrency will survive without any of the mafias that infiltrated it with centralized entities like exchanges, stablecoins, and pointless trusts or ETFs.

Those cheering for these foundations are the ones that now curse every SBF out there. Remember the crypto influencers telling you to buy Luna as it was crashing? They are still there and getting their payments to promote their garbage.

Sadly the crypto message was distorted, and this time the voices that promoted the use of crypto were less. Moreover, the maximalists completely sided with these voices allowing custodians to extract value from crypto into the fiat establishment.

Crypto will come back, but those that did not do their job well next time will get called out immediately. There won't be any reservations or any compromise.

Cover Image on Pixabay

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No Financial Advice.