Another one bites the dust.
Which one now?
Doesn't matter, just the next one.
Could be FTX, Maybe Blockfi, Today I saw another called Bitfront. Who knows which will be the next one tomorrow but there will be a next one.
It's like a stack of dominoes falling one by one and taking the next exchange with them.
The whole industry is full to the brim of bad actors and bad practices.
I know that these are tough times for a lot of people but what we are seeing is a major clear out of a lo of rubbish that will be good for the eco-system in the long run.
Businesses that were propping up their finances based on high return yield platforms and yield sites that were using customers funds to increase their own wealth.
It's a short term pain for a long term gain.
The businesses and chains that do survive these next few months will be the ones with proper management teams, development teams and good business practices.
It's not easy to see it happen this way but it's a reminder for all of us to be careful with our money. To do some research and to store funds securely.
Anything that seems too good to be true usually is.
This is a time to consolidate funds into safer spaces and hold until things get better.
Watch and wait for the dust to settle and see who the survivors are.
And there will be survivors. There will also be a lot more victims before this is all done
IT's amazing how many exchanges and yield platforms have no concept of risk management and how to run a business. They aren't happy to earn a good income and instead indulge in risky lending to try and get rich quick.
This works great in a bull run but doesn't hold up very well as a strategy during a bear market and those are the effects we are seeing play out right now.
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