Hi fellow Lions,
Today I wanted to explore a little bit on how vulture capital has done damage to crypto markets.
Vulture Capital Burning Crypto
Everyone likes when the prices of the things they've invested in go up. What many people don't really pay attention to are some of the conditions or reasons that those prices have gone up though!
Venture (vulture) capital is one of the things that I think has made a significant impact on the crypto economy and we can clearly see the evidence of this in the past year for the various headlines that have occurred. Companies like Celsius, FTX, Gemini and others have all imploded because of their greed. Now that these people have been burned numerous times, now can we get to healthy prices?
I don't want to be delusional and think that in order for pretty much everything in this world to happen, there needs to be a financial motive and backing to it. That's pretty much occurred throughout the known human civilization. There has always been a gain/loss motive and a medium of exchange that's been factored into it all. What I think has also been the case for likely just as long, as there are people who are always trying to scam people which allows them to make a bunch of money before they get caught.
This certainly is the case in the day we are living in on many fronts!
Just sticking to more well-known examples like Celsius, FTX and Gemini, we can see how the Venture Capital people who I will be calling Vulture Capital people have taken full advantage of the people who are trying to test out the explosion of Decentralized Finance (DeFi) over the last 12-24 months. This meant that a lot of people funneled all kinds of money into these various "projects" or forms of crypto in search of yield and gains. They were promised the moon but given nothing but hopes and dreams, while they were fleeced and taught a valuable lesson.
This is part of the growing pains of finances in my opinion, and the maturation of the cryptocurrency ecosystem as a whole. There are going to be some difficult scenarios that occur and we need to have those because we will learn what to and what not to do which is just as important as anything, if not more important. The best lesson taught is a painful one. Unfortunately many people aren't able to withstand that pain and do something rash but it happens whether we like it or not.
What I am hoping though is now that we have had these things happen, I am wondering if we can start to get back to having healthier prices for things. I don't know if that will necessarily happen because of the nature of the economy right now, where a lot of the past 30-40 years is kicking the can down the road on borrowed money and massive sums of money getting filtered straight to the top of the economy, but I do have hope that we can gain some sort of caution tape put around some of the obvious scams that are out there.
I am hopeful that with more people that are "seasoned" to the bullshit and have had exposure to the way people can be sold hopes and dreams while literally opening a back door (FTX) that nobody knows about so your stuff goes in the front and out the back into their pockets to launder later, we can hopefully steer people away from some of that nonsense.
At the end of the day, all I'm hoping for is some rationality and healthy price fluctuations. I don't know if we will be able to achieve that but I do think that we have seen a lot of fairly high profile scams the past few months, so let's hope that we don't fall victim to these as large as we have done in recent past!
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