Enjoy this crypto disillusionment

Friends, have you ever felt disillusioned?

When Daisy left and fell into Tom's arms, Gatsby's American dream was extinguished.

He failed to win Daisy's love in the end; no matter how much wealth Gatsby possessed, no matter how many luxurious banquets he held, and tried to integrate into the upper class, he still could not cross the social class gap...

" So we pushed forward, but it was like sailing against the current, destined to keep going back to the past ." The last sentence of "The Great Gatsby" always makes people want to cry.

UST unanchored, LUNA plummeted 95% in one day, altcoins generally pulled back more than 30% in a single day...

After experiencing the prosperity of "Tesla buying Bitcoin ", "El Salvador using Bitcoin as legal currency", and "traditional VC ALL IN WEB3", the encryption market has also ushered in a moment of disillusionment.

" It was just a dream, I was still very touched after waking up for a long time ", I couldn't help but start to rap.

On the eve of the financial crisis in 2007, Chuck Prince, then CEO of Citigroup, famously said , “When the music of liquidity stops, things can get complicated. But as long as the music is playing, you Gotta get up and keep dancing. "

A month later, this gorgeous movement came to an abrupt end, marked by the bankruptcy of Lehman Brothers, the financial tsunami swept the world, the market collapsed uncontrollably, and the stock market plummeted.

On May 5, 2022, the Federal Reserve announced a 50 basis point interest rate hike. Five days later, UST unanchored, and the "Crypto Soros" behind the scenes ushered in an excellent sniping moment.

A "stable legend" with a market value of up to 40 billion US dollars just fell apart. There is no "too big to fail" in the encryption world.

The UST thunderstorm’s damage to the market consensus is not only about stabilizing this track, but also severely damages the investment logic of the entire altcoin, especially those VC Coins with high FDV.

" The copycat leader Luna has fallen, how many others are better than Luna? "

The 312 in 2020 is the shrinking liquidity of Bitcoin that brought the market up, and the 510 is just the "jumping show" of the cottages.

New public chain, time machine (Fork Ethereum ecology applied to the new public chain), stable... These narratives have all fallen into the "cold palace", not to mention that the bigwigs in the primary market are also starting to have a shortage of food.

One of the biggest catchers in the crypto market, Tiger Global has lost about $17 billion in this year's tech sell-off, one of the biggest dollar losses ever for a hedge fund.

Tiger's more than 40 investments in the encryption field can only be described as "charitable", which is worthy of the name "great benefactor".

Jump Crypto, once the big winner in encryption last year, now throws it all back. Facing UST's predicament, he wants to save it, but he has more energy than energy.

The primary and a half OTC market (OTC), which used to be very popular, has become a meat grinder for VCs. It is conscience to only drop by half. At least it is more benevolent than letting VCs take over 6 yuan, and now it has fallen to 0.4.

As for the primary market, it is a feast of ground meat for "TO VC". The valuation of 1B is more dreamy than the "market dream rate", but there are still VCs who pay for their dreams.

Under FOMO, there is no complete egg.

Previously, the traditional VCs who shouted "All in Crypto" and "All in Web3" were silent at the moment. Apart from contributing new materials for "VC top (traditional VCs will run away when they shout All in)", some people Lamenting, "Unfortunately, the WEB3 fund raised in Singapore has not yet been raised", some people are hesitant and frightened, "This market is too dangerous, or I should slip away first"...

To be honest, I don't want them all to run away. In order to appease their emotions, I am going to write an article "Don't Let Traditional VCs Run Away" (Don't run away, folks) to give them psychological massage.

The UST thunderstorm hit the market sentiment hard, but I can be sure that the encryption frenzy will sweep again. In the next few decades, Crypto will still be Alpha, but it must have a different narrative logic.

Crypto directly benefits from the global "financial populism" and "the Federal Reserve's big release". In the long run, these two points are unstoppable historical trends. At the moment when deglobalization is accelerating, Crypto is the only The "Noah's Ark" connecting the global market.

If you want to talk about reflection, I think that in the past, practitioners in the encryption industry put too much energy on the "economic model". Various Ponzi dolls in the name of innovation emerged one after another and indulged in them, but in essence they are still Leverage.

For example, we have publicly praised Luna for its strong value capture capabilities.

When the Fed 's music stops, if Crypto or WEB3 (Crypto's vest) wants to achieve long-term healthy development and be recognized by the mainstream, it really needs to consider two things: "out of the circle" and "positive externalities".

Every round of bull market cycle will have a new narrative, and new encrypted heroes will be born. When enjoying this encrypted disillusionment, be ready to face new turbulent waves.

Written by: Kuidecan