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In This Issue:
- Uh Oh
- Bitcoin Thoughts And Analysis
- Legacy Markets
- Ethereum Is Not Broken
- Difficulty Bomb Delay
- The Wolf Of All Streets Podcast Ft. Senator Kirsten Gillibrand
- My Recommended Platforms And Tools
The newsletter is a bit late today. To be honest, writing it has been a struggle. I overslept because I was exhausted from Consensus (maybe the first time I have overslept since college) and woke up to a crypto tornado of epic proportions.
I worked hard on an intro and had it ready to go, but the market had other plans. This newsletter was supposed to be called, “Has Everyone Lost Their Mind?” but that one will have to be postponed .
Let’s talk briefly about Celsius.
About an hour before midnight last night, Celsius dropped a bomb.
Scratch that. It was a Mother Fu**ing Nuke.
You can read their official statement HERE
Titled, “A Memo to the Celsius Community,” the blog says this:
“Due to extreme market conditions, today we are announcing that Celsius is pausing all withdrawals, Swap, and transfers between accounts. We are taking this action today to put Celsius in a better position to honor, over time, its withdrawal obligations.”
The blog has little to no specifics. It’s the statement above and nothing else but a few apologies and some coping. There is a lot that I want to say. But as the bearer of news, good or bad, I want to give Celsius a little bit of time to release more details and want to make sure that I have the facts straight. I am in no way shape or form defending them. This is legitimately bad. But this situation is far too serious to deeply comment on before we have all of the information. That’s what got us here in the first place.
The facts of this situation are murky at best. Celsius has been under immense pressure from a swath of the crypto community, who have been warning of a liquidity crisis, but much of it sounded like the usual coordinated FUD thrown at any community. I had Mashinsky on a panel a few months ago, and he was clearly under pressure even in that setting, because the other guests were generally cautious of lending Bitcoin.
Today’s announcement legitimized the speculation around Celsius’s issues, stating that the suspension of withdrawals will allow it to “stabilize liquidity.”
“Our ultimate objective is stabilizing liquidity and restoring withdrawals, Swap, and transfers between accounts as quickly as possible.”
There will be a lot to say about this and I will speak my mind. Until then, I am going to wait a moment to gather more facts.
But I can confidently state this.
In the rush to create a parallel and superior financial system, it seems many in crypto have recreated many of the same issues but with more risk and less secure rails.
That is the nature of moving fast and breaking things, but now crypto has to do better. If we don’t learn from these lessons, the industry will fail.
Breaking things when the life savings of every day people who believed they were parking their money on secure platforms like Anchor and Celsius (which could still be safe) is an invitation for regulators to drop an atomic bomb on our heads, which may be exactly what this industry needs.
How can we ask anyone to trust this industry right now?
Things will break.
Bitcoin will not. I am by no means a maximalist, but I have zero concern about my positions in Bitcoin and will be increasing my exposure over time.
As an aside. I can choose one of two paths as a voice in this space.
(1) I can mentally capitulate, slow the content because there are less people, less interest, less engagement. I can basically give up until the next bull run.
(2) I can double down, work harder, put out more content, help as many people possible through the tough time and build. I can share my own losses and experiences so you know that you are not alone.
I think you know which one I will choose.
I am walking face first into this storm with the rest of you, and I have no quit in me. Expect my commitment to this community to only increase, as well as the quality.
This is when we build.