After throwing millions on stadium naming rights and SuperBowl commercials, you’d expect the cryptocurrency sector to enjoy some moment of yield, no matter how brief it might be. I guess everyone rushed to offload the nerdy virtual coins they got from those random giveaways. Anyways ‘We are In’, I didn’t have an answer when Inter Miami joined hands with FTX to ask that question…I guess I do now. Just like every other cryptocurrency investor; “we are in”, a bear market.
Triggered by harsh global economic conditions, worsened by infamous plays by billion-dollar cryptocurrency projects; we are back to some 2017 figures. $19,000 for a bitcoin. Our friendly and ‘all funny’ influencer said we wouldn’t see bitcoin below $30,000 again. I hope they are wrong; bitcoin doesn’t seem ready to jerk back to $30,000 anytime soon. In the right sense, they are still right…even though they didn’t mean it this way, I believe.
Things went ‘bust’ along the line; after a series of multi-million-dollar bailouts and quick pumps; it felt like the first scare was just a scratch and easy to survive. Celsius paid back their loan and the liquidation point was down to $0 for bitcoin. Regardless of how much they received from the relief package, that move was plausible. But not enough…
Along with crypto brokerage project – Voyager, Celsius has filed for chapter 11 bankruptcy. It’s no cause for alarm; Chapter 11 bankruptcy isn’t even as bad as it sounds, except if you are being owed by the project. If you are, well, I can’t also tell how bad it might get. A penny for every dollar being owed? Reasonable, considering the fact that your debtor has publicly declared that they ‘don’t have your money’. Hip-hop-themed Hollywood movies know the best way to put those words.
Contrary to what you might expect; Voyager token went from $0.15 to $0.8 in reaction to the bankruptcy announcement. If you ever wanted a true measure of the irrationality of the crypto space, there, you have your answer. It trades at a few cents below $0.5 at the time of this writing. But if you caught that jerk, then consider filing for bankruptcy, good news.
Cryptocurrency marketing and operation tactics have always been simple; “be as extravagant as possible”. These tactics have worked from day one, right from the day Laszlo Hanyecs paid 10,000 bitcoin for two ‘large’ pizzas and made that historic announcement. Everything that followed was simply large figures and lustrous antics that are meant to catch attention. Including the popular 1000X. Like a desperate attention seeker, the crypto space has always been a field of enticing plays, as enticing as giving away thousands of dollars to families watching the Superbowl with a pack of popcorn.
Every project plays the same game; American celebrities carted away with more than their net worth for promoting meme Coins that generally end in funny Rugpulls. SouljaBoy is still waxing strong with his NFT dabbles. The famous LimeWire will be making a comeback as an NFT marketplace. You guessed right; the Ad video was a passive ‘Crank dat’ commercial as well.
A normal rule in finance and accounting; big spending also comes with big consequences, especially when they are extravagant. We are seeing that play out. Things are currently at the stage of staff lay-offs and price crashes. This week sheds light on the next stage – Bankruptcy; Voyager and Celsius lead the way. Who will be joining the league? Not for anyone to answer, but it won’t be a surprise if another relevant cryptocurrency project follows this route. Folding up completely is a worse scenario, but we are used to big and small projects saying ‘goodbye’ in the funniest ways.
I’d love to see things return to normal, including those extravagant spending. I’d love to see pop stars minting NFTs of some ‘rare, behind the scenes’ pictures and taking payment in USDT for them. It’s the same story over and over again. A bullrun filled with ludicrous spending, followed by a hazy bear market. Just like cryptocurrencies, web3 careers are equally volatile. If there’s any lesson to be learned, this is it.
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