95% Of These Crypto Coins Will Collapse Soon, Says Michael Saylor

Crypto Coins Will Collapse Soon

I think what surprised me the most is fairly intelligent people and entities not realizing everything I just said to you fast enough. For example, it seems quite evident I didn’t have a penny on FTX.

I wouldn’t invest a penny in FTT, right? I mean, from the very beginning, if people that have any business acumen or background, any legal sense, any ethical training or any technical training, any university, if they would look at this, they would say, yeah, it doesn’t make sense to invest in twenty thousand random tokens. They get spun out of nowhere.

The trade on an opaque offshore exchange with nearly infinite leverage doesn’t make sense. Since the crisis at FTX began, bitcoin has plummeted from $20,000 a coin to $15,859, its lowest value since 2020. Crypto Coins Will Collapse Soon

The wider sector has fallen more than 5% since the collapse happened. Big companies and protocols that have exposure to FTX are having to prove their own liquidity.

A popular token on the Solana protocol, for instance, that lets users of that blockchain trade bitcoin relies on FTX for its value if the exchange goes under is unclear whether any of the bitcoin on that protocol would be retrievable, wiping millions of dollars from existence overnight.

Crypto Coins Will Collapse Soon
Crypto Coins Will Collapse Soon

And as with every crypto crash, all eyes are on tether, the $70 billion stabilize that underpins much of the sector’s economy. On Thursday morning, the token slipped off its peg, trading at $0.98.

The chief technology officer of the company that issues tether, Paolo Arduino, tweeted to reassure investors, noting that the company had processed about $700 million of withdrawals over the past 24 hours. Crypto Coins Will Collapse Soon

No issues, he said. We keep going. The financial impact of the collapse extends far beyond the immediate FTX customer base, too.

The week’s events have sent other crypto coins into a downward spiral, with the price of both bitcoin and ether falling by more than 10%, wiping upward of $60 billion from the market.

Large sums of Solana were owned by FTX and its subsidiaries and therefore have been hit even harder. it is an incredibly expensive lesson and fundamentals of monetary theory and banking that money, under the control of human beings, cannot be trusted as a whole.

Crypto Coins Will Collapse Soon
Solana

Bitcoin being a decentralized coin without the interference of any third parties, can be trusted more than any fiat currency. Many of the cryptos will collapse as much as 95% of the current crypto assets.

Surprised me that so many otherwise intelligent people put so much money into these things. Big institutions. Crypto Coins Will Collapse Soon

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Why would a pension fund? Why would a VC investor why would they put hundreds of millions of billions of dollars into crypto tokens and crypto exchanges?

And why would they pursue these ideas in such an irresponsible fashion? And sometimes you almost want to tweet. People will literally lose a billion dollars chasing after these crypto casinos before they’ll put a million dollars in bitcoin.

It’s just fast money, borderline greed, I guess, thinking that somehow bitcoin is too straightforward, too straightforward an idea.

It’s like bitcoin is too honest, too ethical, and too rational. And so the conclusion is, I have to skip over that, and I have to go for the next thing, the next bitcoin, or the next good idea.

I think bitcoin is boring. And so that’s what surprises me. That people with billions of dollars in education should know better when they’re granted something which is ethically sound, technically sound, economically sound, and the first perfected money, and the first truly open, fair, decentralized monetary network in the history of the world, when they’re staring at it, their reaction is, it’s too boring.

How do I take another crypto risk? I guess it just takes these billion-dollar blow-ups of celsius and voyager and FTX for some of them to start to get the idea that bitcoin is the innovation, and they should come back to basic first principles.

If the regulators had moved faster, if they had moved more aggressively in 2018 or 2019, you wouldn’t have seen all of these crypto casinos spin up the way they’ve spun up. One of two things will happen with regulators.

They will either move much more aggressively in a fairly regressive, conservative approach, and that means they’ll just shut down all the other crypto innovations, in which case, bitcoin will still be a beneficiary. Crypto Coins Will Collapse Soon

Because in a conservative world, bitcoin is the apex crypto property and the apex crypto asset, and people will simply hold it as a long-term store of value.

And if the regulator said, everything in the crypto ecosystem is now forbidden, all you can do is buy bitcoin and hold it and sell it at the end of its useful life, treat it like gold.

Crypto Coins Will Collapse Soon
Bitcoin

Bitcoin would still benefit, right? The other extreme would be the regulators act proactively, they act progressively, and they provide a path to the registration of a digital commodity, a path to the registration of a digital security, a path to the registration of a digital token, a path to the registration of a digital exchange, and a path to the registration of a digital currency.

They said, you want to issue tether, you have to file monthly statements, register with this banking supervisor, and take on these responsibilities to have these reserves and abide by these guardrails. You can issue a stablecoin.

If they said that, if they said, okay, well, you want to issue digital security, you have to do it this way. Fill out these forms, and every month or every week or every quarter, this is what you do, then what you would see is a collapse of all the true scams. Crypto Coins Will Collapse Soon

You would see the VCs that have been trying to launch these other things. They would have to go through a registration process. Now you would actually understand, and you have full disclosure and transparency. Many entrepreneurs would say, this is too hard.

You get the sense that some of them never bother to hire a lawyer or get a legal opinion, right? So I have to pay for lawyers and accountants in order to be in the business. This is too hard. You’ll see a rationalization. 99% of all the tokens will go away. You will see some stablecoins. There’s a bona fide need for a coin, like a circle or a tether.

The world wants it. Maybe not in the US. But outside the US. The world wants it. So I think you would see some of those. I think you would see some digital securities. I think you would probably see actresses and musicians.

They would say, hey, I’m going to issue my Katy perry token, right? But they would do it with a lawyer in a compliant, ethical way because they don’t want to risk their reputation. The industry will morph, and it will change. And at the end of the day, bitcoin will benefit from that too. Crypto Coins Will Collapse Soon

It’s not clear to me which approach is better for bitcoin. The truth is, the only thing that is clearly good for bitcoin is if we were able to disentangle ourselves from the crypto casinos, right? Because the crash of terror, the crash of luna, the crash of celsius, and the crash of FTX, have been painful events.

And bitcoin is cross-collateralized, and they’re selling bitcoin when they’re crashing their doge coins and their hamster coins, and their yoyo coins. And so shutting that down will be good for bitcoin. I’ll take the volatility out of bitcoin. And then these other regulatory guidelines.

What do you think, which crypto working well right now ?? comment below

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