Crypto main figures fall like flying when the bear market turns one
Crypto main figures fall like flying when the bear market turns one
a year ago the total crypto capitalization met All-time high almost 3 trillion US dollars, which marks the beginning of the current bear market.
The Bitcoin top value of $ 69,000 last November initiated a golden phase for digital assets, a place where eccentric characters were billions of dollars in promising-and risky-startups and protocols and achieved historical returns.
Since then, stricter liquidity crises have driven themselves from the cryptoma markets, and crypto has broken into a total of two thirds. The actual question is what - if at all - the industry participants have learned from the nostalgically colored good times and the rocky prices that have been continuing since then.
"The past year was determined by the child prodigy," said Patrick White, Managing Director of the cryptodine service company Bitwave.
No wonder child was larger than FTX CEO Sam Bankman-Fried, which was used to operate a popular centralized crypto exchange and was revered for its retail skills.
"He started as an arbipper," said White to Blockworks. "Arbitrage is hard, everyday work. And somehow I always considered him a very disciplined person."
iconic enough to be known as SBF, the former Jane Street Quant, slept on bean bags in his office in Hong Kong and pledged give away the majority of its billions.
Middle 2021 Bankman-Fried
The aspiring crypto loan platform Celsius had to expand its series B round after she had over-financed her target of $ 400 million. The founder of the serial entrepreneur, Alex Mashinsky, published a book about the use of crypto Financial independence, "the Mashinsky method". The somewhat new stablecoin terra, which was introduced on Cosmos, and her brazen founder Do Kwon enjoyed shooting all doubters. as Kwon to a Terra skeptic said: " A lot of fun " Lunatics, a group of young, very online investors who thought that Terra was a way out of less inspiring economic conditions. In view of the fact that crypto is always cyclical, Kwon had of course borrowed the maxim of Bitcoin maximalists. "That was a population group that really feels like the world was no longer really set up for them," said White. One of Terra's main investors was the crypto hedge fund Three Arrows Capital, which is managed by the thousands of former Credit Suisse dealers Kyle Davies and Su ZHU. The fund from Singapore celebrated for his enormous growth became a sought -after donor for crypto projects before the bear struck. ZHU and Davies made a down payment for a $ 50 million yacht that should be larger than everyone else in Singapore. Opulent expenses had become part of Cryptos Mo: Luxury watch prices would Sprumped as the crypto assets. The spending "pharmaceutical brother" Martin Shkreli came out of prison and started a crypto project at about the same time. zhu was notorious for his poetic bullish crypto tweets, once Write "If you do not understand and refuse to learn it, it will be a tough century for you." The big banks seemed to be prepared. A Goldman Report from October 2021 even praised Defi's advantages. After the news of the Covid-19-OMICRON variant had brought the markets into collapse in November, Krypto still had to reach its highs. But a flood of survival-sized crypto characters still put on large bets in the following bear year-and cheered on the masses to "refer" to sales prices in digital assets. Michael Saylor, CEO from Microstrategy, had said investors eight months earlier that they should put a burden on their houses with a mortgage to buy Bitcoin. The President of El Salvador, Nayib Bukele, repeatedly "bought" the decline in Bitcoin prices with the country's state fund. "I hope the year of the characters is over," said Luca Prosperi, consultant at Cherry Ventures. "Many of these guys are either poker players or traders and they were massive gambling." When the prices fell, Terra's dollar bond began to wiggle. At the beginning of May, the Terra Foundation spent $ 450 million for Bitcoin to save the bond. "Insert more capital-stable guys", kwon wrote in a desirable, now, now deleted tweet. "use more capital - loyal boys"
The hedge fund company registered bankruptcy, and Zhu and Davies disappeared from the public and occurred silently at zoom hearing hearing and with cameras off. Court documents showed that ZHU made a creditor of $ 5 million, and Davie's Ms. claimed that she was $ 65 million.
The crypto liquidity crisis crashed outwards. As it turned out, Mashinsky's yield of 8 % Celsius was not the true value of the money, as he said blockworks in 2021, but a non -sustainable drainage of money. It turned out that Mashinsky also sold Celsius-token as he advised investors to hold them.
as Luna and Three Arrows Capital Ton, Mashinsky Harrow Celsius was okay. The next day the stock exchange paused the payments. In the meantime, Celsius has registered bankruptcy and Mashinsky has resigned.
Bulle or bear, the adoration of crypto characters is dangerous
It seemed to be a crypto project that flourished on the bear market: Bankman-Frieds FTX. The company bought the crypto loan Bitvo and Blockfi, which have been in difficulty, while making an offer for the Bankrotte Voyager Digital. When Coinbase released 18 % of his employees, SBF A Twitter-Thread he explained how FTX would not continue to grow.
"Sometimes you are bitchy," said Bankman-Fried.
One year after the all-time high of crypto, his Bullenmarkt protagonists are almost all in legal or financial difficulties. Kwon is sought by Interpol. Mashinsky is examined by the Celsius creditor committee for his trade behavior. Saylor resigned as a microstrategy CEO and faces a lawsuit for tax fraud of $ 100 million.
3AC believers try to invite ZHU and Davies, which were apparently not cooperative during insolvency proceedings. Bukeles El Salvador had to buy back his own debts. When Bankman-Fried Ftx sold, the last child prodigy no longer plunged in one year of the child children Milliardär . Prosperi wonders whether crypto can stay away.
"What worries me is that the same people now worship [Zhao] a CEO of a stock exchange [who] wins sacks openly," said Prosperi. "This is gambling again."
on Tuesday after Bankman-Fried announced the upcoming takeover of FTX by Binance, Su Zhu broke his public silence, Write on Twitter that his last months were spent and considered a quiet life in the forest.
at the same time Do Kwon and Martin Shkreli occurred at the "up only" podcast to talk about the case of ftx.
"I want her to know that prison is not that bad," said Shkreli to Kwon.
unsafe how you should react otherwise, the group broke out in laughter.
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The article Crypto Main Characters Drop Like Flies as Bear Market Turns One is not a financial advice.