Be Careful When Participating in the Crypto Industry
It has been nearly a year since I first came into contact with the crypto industry at the beginning of 2021. At this time last year, the crypto industry was in full swing, but now it is withered. A typical day in the currency circle is like a year in the human world.
At that time, everything was fresh. I not only recharged my faith, learned some new concepts, Metaverse, Web3, recharged a little decentralized faith, and recharged a lot of RMB. Nowadays, some concepts are outdated, the idea of decentralization is more firm, and the RMB has been halved. The turning point probably happened in early May 2022, when Luna collapsed without warning. Later in July, the well-known cryptocurrency investment company 3AC was liquidated, and the founder Zhu is still missing today. In November, the cryptocurrency exchange FTX went bankrupt, and the winter of the currency circle arrived.
The reason why the crypto industry has ups and downs is firstly that the underlying foundation of the crypto industry is blockchain. As a value chain, blockchain is naturally associated with assets. Most blockchain participants come for wealth. People are eager to get rich overnight. Projects without wealth effects do not get attention. Secondly, smart and technical scammers designed Ponzi projects from the beginning. After making the plate big enough, they cut the leeks without warning.
If you don’t want to be cut, first, believe in the evil of human nature: From the collapse of Luna, the liquidation of 3AC, and the bankruptcy of FTX, it is not difficult to conclude that the core personnel of the three events deliberately exaggerated the project achievements during the project operation, privately transferred assets, and attempted to cover up the facts and muddle through when the crisis first appeared in the project. When the disaster was unavoidable, they donated money and disappeared from the public eye. The subsequent review shows that these people knew the lifeline of the project from the beginning, and had already formulated an escape route. Therefore, do not trust any centralized projects and individuals who advertise morality. Second, clarify the boundaries of participation: As an emerging industry, the asset attributes, decentralization, and anonymity of the crypto industry are indeed fascinating, but blockchain and the crypto industry are still in the early stages of the industry, and everything is not very clear. Except for the Bitcoin network and a few Ethereum public chains, other public chains and almost all projects and all exchanges are centralized. When a crisis occurs, the operators behind these projects will likely run away first. Ordinary people should be very cautious when participating in the crypto industry. You can understand the development trends of the industry, and you can take a very small part of the investment, but you cannot go all in.
Published at: Nov 23, 2022 · Modified at: Dec 11, 2025
