FTX & Alameda's Altcoin Death List
FTX exchange is one of the biggest black swans of crypto ecosystem. The exchange received lots of early investment from Ventural Capitals and Sam did his job ideally to be a strong rival to Binance while it was in its prime times.
The collapse of FTX was a milestone in crypto because it ruined the whole sentiment and changed the attitude of policymakers even more negatively. While the risks were intolerable, thousands of people left the market by accepting around 40% - 50% drops in the prices within a short time.
It has been a long time since we experienced a brand new FTX FUD. I think it is time 🦍
Coins Might Get Liquidated
Unfortunately, there is massive sell pressure on the hottest coins in the market. When you look at the investments of FTX and Alameda Research, you will directly recognize SUI, Aptos, Polygon, Solana, Immutable X and Arbitrum as some of the promising projects.
Unless the FUD is over, these tokens are likely to suffer more as the market goes down.
There is an expectation of another local lower-low in the price of Bitcoin. The price might find a support line between $21K - $23K as the bulls will start pushing hard to get cheap crypto tokens before they are bought by others!
The black swan case of FTX will continue until the tokens are traded OTC or sold gradually on the market. In both cases, the sell pressure will never be as hard as what we are experiencing in the FUD.
Being More Selective Against FTX FUD
I started to DCA my favorite projects but It costs me a lot already. The list should never be neglected because the issue with it is not the amount of money, but rather, the perception of people against the projects.
One of the newest criteria for me is focusing on the maximum supply of the token on FTX list. If the token can be printed more, then I will see it as a huge red flag due to the risk that we had taken in the times of LUNA and FTX.
We forgot the fact that FTX can be extremely disruptive. If the market will face bigger issues due to FTX and Alameda Research courts, then it might be a better idea to adjust the size of the positions while buying spots or opening long and short. As far as what we see on the market, the trend will be downward.
Any Better Options?
Meanwhile, the new coins are not the only available options to invest in the crypto ecosystem. I see several strong projects, such as MINA, RNDR, HIVE, XRP, and many others are also undervalued and even at the dip levels.
I really do not want to miss the dip levels of the coins in crypto. Now that we have suffered a lot over the last 2 years, then it is time for us to rise again. Yet, it does not mean that we should jump into the market and spend all our stablecoins (or the majority of it). However, theere will be some risk-takers who will make the best earnings because of their dedication to crypto. As it is too complex for amateur investors, my investment strategy will be based on a conservative DCA while there are too many risks (Interest rates, Inflation, Brent Oil).
What do you think about the case of FTX? Is crypto recovering?
Share your thoughts below 👇
Hive On ✌🏼
Posted Using LeoFinance Alpha