No Free Pass On Crypto

Cryptocurrency is still an emerging industry. It can be compared to the Wild West of the 19th century, a chaotic environment where every man is out for himself. A regulatory oversight is still lacking and I doubt whether it will come soon enough. While governments are scrambling for a game plan, The crypto market is on a freefall, bleeding all parties involved.

Nobody wants to take a loss. As the concept of crypto been a safe haven is been questioned with the prevailing market conditions, people are desperately looking for a way out of this 'market shock'. Doom and gloom seems to be written everywhere and it’s taxing on our emotions.

No Insurance

To some extent, we're all at the mercy of outside influence or unforeseen circumstances. In the real world, when a disaster happens, there's atleast some mechanisms involved to mitigate the risk, assess the damage and a recovery plan. In the crypto world, there isn't any yet. All we can do is watch as things turn red, trying to reason our way around it. Or if you're like me, you try to remain unfazed by it which most of the time doesn't work.

Rumors have it that a group of whales are behind the current market down turns, the purpose is to flush out the weak hands and triple their investments. It is said that Do Kwon withdrew 80m per month before the Terra/Luna Crash and more recently, Celsius are accused of transferring 320m worth of crypto to FTX just before halting withdrawals on the network. Whether we can ascertain if the rumors are true or not is yet to be decided.

However, since it's blockchain. There's an element of transparency, so a little on chain digging can reveal all the data. The problem is not everyone can do that and we often do it too late, when things have already happened.

Clearly, There are bad actors in the play who think they can get a free pass on what they have done but it easily catches up to them. That's the beauty of blockchain. On the other side of the spectrum, the average user/investor investing most of their savings only to be wiped out of existence is outright catastrophic. No free pass, no insurance, nothing. Just like that and everything is gone!

Going broad is much more sensible than putting your eggs in one basket but I guess hard lessons are needed for us to understand the complexity of the situation.

I just hope that the stolen crypto can be recovered and returned back to their rightful owners, a process to enable the equal redistribution. They say 'not your keys, not your crypto' but in this context I'll like to say you can have your keys and not still have your cryto.

Look at Coinbase warning users that if the company goes bankrupt the users crypto becomes their crypto? Maybe it was a typo and they meant 'when' instead of 'if' because in this uncertain market conditions, anything can happen.

Conclusion

It does seem that what we're seeing are merely consequences and there are few people who know what's actually going on. All this big crypto transfers and withdrawals happen just before a crash. Maybe it's a ponzi scheme framed as an investment business. Or maybe they saw the reflection of the global market crash coming and decided to save themselves at the cost of the customers. Regardless of what is it, nobody will remain unscathed.

Let's hope that things don't spiral out of control.

Happy #LPUD

Thanks For Reading!