Personally I have been out of the market for months and have no immediate interest in buying anytime soon.
If you are tempted to get involved, be aware that LUNA/UST is in a death spiral and is dragging all prices down with it. Many projects and funds have exposure to UST (a stablecoin which is dramatically off peg) and there may be second or third order impacts / insolvencies. For example, I have removed all stablecoins from platforms such as Celcius and Nexo as HIGHLY likely they are exposed to significant losses here.
If you are looking at getting into crypto now, start by looking into this issue and give it some time to resolve. This is the biggest and most systemic issue to impact crypto in years, be very cautious.
Last edited by Gollygordon; 11-05-2022 at 04:45 PM. Reason: typos
Specifically, there is a pretty decent chance a number of Korean funds blow up (project lead (total shitbag) is a Korean guy and project has a strong presence there). Retail users are already completely ruined. Number of reported suicides, forums full of people talking about ending their lives. Absolutely tragic and shows the very worst of crypto at play - informed commentators had been saying for 6 months+ that this was coming, but very large funds and vested interests created an aggressive culture of shouting down concerned input.
The vast majority of crypto coins are Ponzi schemes and outright scams. Stablecoins are the ultimate scam - all the blouw-up risk of crypto and none of the potential upside from Greater Fools ploughing in. The whole space is going to blow up and everyone will lose their shirts. Stay the fuck away.
TheBrit, that simply isn't true and it's either ignorant or dishonest to conflate the UST situation with the chance of failure of fully collateralised stablecoins. I have been publicly decrying Luna/UST as close to a literal ponzi for near on a year, but have little concern over holding the likes of USDC. Quality stablecoins do not need a greater fool and have not reason to implode.
No interest in debating the general quality of asset in the crypto space other than to say it is hugely variable and cannot be covered with a single sweeping statement like yours.
That said, crap like UST does present systemic risk across the whole space and I would urge anyone reading who is potentially exposed to take steps to protect themselves. By which I mean exit any potentially impacted platform and try to minimise exposure to under collaterlised stables. No signs of weakness yet anywhere other than UST itself, but personally I wouldn't touch the likes of MIM, FRAX etc with a bargepole right now (or ever, really).
Last edited by Gollygordon; 11-05-2022 at 06:21 PM.
I would also add that I've reduced USDT exposure a lot. Probably not an issue but they are known to hold a fair chunk of commercial paper as reserves and given what is happening in the rest of the financial world (and how much worse I still expect it to get), it seems advisable to be cautious.
Presumably you are referencing USDT? As above, I think there is some risk there (though small). Can't be bothered to debate the specifics with you but they are more open than you imply though.
But anyway, yes, there are a number of reputable options with third party attestations of reserves by the likes of Grant Thornton etc. I would never suggest the risk of any of them is zero, but there are numerous that are dependable and well backed. It isn't for anyone and no judgement towards anyone not comfortable holding them.