WTF, Crypto?

Some Harsh Truths: Why crypto is an autistic playground for forward thinking degenerates, and why we can all get rich by being cautiously retarded.

Look, in case this was not obvious from the title, this article will offend 90% of those who read it. If you are a sensitive lass and your tummy aches at the thought of coarse language and harsh truths, tune out asap. On the flip side, this article is an important commentary on the absurd state of the cryptosphere, and a reality check that will be an invaluable perspective for those looking to make life-changing gains from this bull run.

If we want to profit from the revolutionary technology that is cryptocurrency, we must acknowledge the harsh truths in the same way we call out the Fiat ponzi for what it is. If you invest based on comfortable false assumptions, you will profit the same way as gambler who thinks the odds on slot machines are not stacked against him.

These harsh truths are not meant to be condemnations. Crypto is without a doubt the best chance at becoming independently wealthy and of escaping the rat race. There are as yet no gatekeepers, no absurd regulations to “protect investors” (USA not incl), few privileged actors, and a genuine chance to make money in proportion to your risk appetite and knowledge independent of your connections and status. The gates are still wide open, but they are closing.

Instead, consider these harsh truths warning signs to help guide you through the forest of BS to the land of life changing riches. Only those who can honestly admit the cryptosphere’s shortcomings will be able to successfully navigate the noise and nonsense that acts like a fog of war, and avoid being lured to the land of the Rekt.

#1 — Fully Diluted Value (FDV) is a Pure Meme.

Tokens are not worth their FDV, and that value could never actually be extracted. DogWifHat has a roughly $900M market cap, and a $2.5B FDV. On its most liquid market (Binance), a mere $500K sell would drop the price in excess of 2%. For every 2% drop beyond that, it takes even less capital. In other words, absent more buyers, optimistically $50–$100M could actually be extracted from this system before it went to zero … less than 4% of its FDV.

#2–95% of Projects DO NOT need a token.

A video game could use ETH or USDC just as well as its own token. Borrowing and lending could occur on a DeFi protocol without any need for a token. Tokens are used to raise cash to fund development and to build a community, generally at the cost of investors. That said, in an intracycle timeframe, there is lots of money to be made speculating on those coins. Just don’t fool yourself into believing almost any of them have long term value.

#3 — Influencoors are the WORST folks to follow for advice.

Most influencers are as trustworthy as injury lawyers at the scene of a crash. Even for those few that are trustworthy, by the time you get the info and alpha you are already way behind the curve and chasing the pump.

Instead, use influencers as a great source of information. Sure, you will have to weed out the 75% of noise in their content, but the 25% can prove very valuable if you know what to look for.

#4 — Leverage and TA (Technical Analysis) are for Pros … don’t touch!

97% of traders lose money. The 3% that make money can do very well, but unless that is your full time job, just buy conviction plays and hold during the bull. TA is astrology for crypto degens, and again only professional full time traders make profitable use of TA. Leverage will get you wrecked, and even great buys can end up in a loss. Resist the urge.

#5 —Governance and staking are NOT utilities.

Crypto governance is like voting on what time the sun will rise. Feels great, but doesn’t change anything. Staking is just redistributing token value from those who are not staking to those who are.

#6 — Airdrops are a stale donut dressed like a delicious gourmet pastry.

Stop wasting your time on airdrops. Just use the protocols that are interesting and offer value, and qualify while building your portfolio. There are industrialized teams farming all the airdrops, and your cut will be worse than if you had just worked those hours at a minimum wage job.

#7 — The $50 — $1M wallets are all BS.

Maybe there is some fellow who got lucky somewhere and forgot he had $50 in $PEPE and accidentally rode it to $1M, but 99% of people would have chased the pumps and sold the dumps and never made a penny.

#8 — Decentralization is a Meme (apart from ETH and BTC).

Granted, decentralization is a spectrum. The reality is no one actually cares, and most protocols are anything but decentralized. It is more of a buzzword than anything else. Protocols do not need to be decentralized to make you a fortune.

#9 — Runes and BRC20s are fun, but terrible “tech”

BRC20s, RUNES and Ordinals … all fun ways to meme on Bitcoin, but tech-wise they are 3 steps backwards from EVM NFTs. They need to be read from a specialized wallet, they are easy to lose, aren’t programmable, must be traded via centralized entities, and are just generally worse in almost every way. Their only value-add is that the early inscriptions had their data actually stored on chain (which ETH and other EVM’s can do anyways)

In fact, BRC20 protocols are ironically launching their tokens on BSC and other EVM chains to allow for DEX trading.

#10 — Real World Assets are never on chain.

The only thing an RWA asset on chain represents is a claim to the actual real world asset, which then has to be enforced and enacted in the tradefi world anyways. Sure, digitized assets like bonds, treasuries and other assets would be far better served on chain, but tangible assets on chain is just another form of rehypothecation. The weak point always remains the bridge from on-chain to tradefi.

#11 — Maxis are toxic and low IQ (Ignore them)

Anyone who shows themselves to be a Maximalist of any sort should be completely ignored. Their opinions are tainted by cognitive dissonance and an inability to think past they religious team mentality. Ironically, that same mentality would have kept them out of crypto altogether. All chains have strengths and weaknesses, and the more of them that make it the better.

#12 —Be a Contrarian

Crypto Twitter is a bi-polar manic mess of hyper emotional nincompoops. Every 1% drop is the end of crypto, and every 1% rise is the start of the supercycle. When the Twitter Trolls are screeching loudest: do the opposite.