Crypto Capitulation Is Here: We Are Buying!
FTX, the biggest scandal in crypto!
Last week marked another round of what some call “crypto contagion”. After LUNA, Three Arrows Capital, Celsius, Voyager, it was now Sam Bankman Fried’s FTX’ turn. First off, I am extremely disappointed by the massive risks taken by all these companies and moreover I feel so sorry for all the “normal people / clients” that lost their hard earned money with these companies or projects. On Twitter and Tradingview I have been warning many times for the risks with such projects and (in general) I warned for a severe bear market back in early December 2021 on YouTube and Tradingview. Now, I do this to help people, not to fuel my ego with being “right”. What I want is normal hard working people to be able to learn, understand and to profit from the crypto revolution that is upon us. Yet, I am definitely not always right and I also still had some cash on FTX unfortunately, however, luckily not that much.
The severity of FTX scandal was way bigger than I anticipated. What happened is simple: FTX used their own token FTT as collateral for risky loans, then propped up their own token through market making (read market manipulation) and lastly, they used client funds to bail out Alameda Research - which by itself was lending out risky loans to parties like Voyager. I never had a good feeling with SBF or Alameda and sometimes - due to lack of information - I rely heavily on my gut feeling. The FTX story was simply too good to be true. Please remember this going forward, when things are too good to be true, they usually are. We have to see what the FTX scandal means for crypto and which crypto projects have exposure to FTX and Alameda. There’s an unofficial(!) list of projects that should be treated with high caution, please check them out and decide for yourself how you could lower your risk. We do know Solana was heavily involved in the Alameda ecosystem and thus we should anticipate more problems on their end going forward. There are billions worth of stablecoins running on Solana and thus, also on that end, we should be very cautious! When new and verified information comes out, I will share it on my Twitter account.
Yet again, remember that I don’t know all the ins and outs of these projects and nothing I write is financial advice. This newsletter is here to share my insights and my opinions and moreover, I share my full portfolio - the decisions I make and why. What you do with that information is completely up to you but I do advise you to do your own research by visiting official sources. In this update, I will go over my FULL game plan going forward and I will share all the projects that I’m looking to buy and hold for the long term (at least 2-5 years). However, this content is for my paid subscribers, simply because I do not want it to be leaked a wider audience, nor do I have the ambition to become an influencer. 10x Club is for a small club of crypto investors that like to read my opinions on the market. So let’s forget all the trouble and let’s dive into the amazing buying opportunities that are here…
The 10x Club Portfolio
With the turmoil in the market, we grabbed a good chance to fill up our bags. We did so during June lows and now we do it again! In this emergency update I will go over which projects I invested in and in the upcoming updates, I will dive deeper into why I choose them. Alright, let’s go!