I have always been quite skeptical of the cryptocurrency craze beyond the two somewhat legitimate coins, Bitcoin and Ethereum. There were so many meme coins, “shitcoins”, joke coins, and just insane schemes it just made everyone’s eyes bleed wondering which one was going to implode next. Today, it’s an across the board liquidation overnight as apparently Asian traders led the way getting the hell out of the way.
Even “Tether” the so-called most stable of stable coins has broken the buck and lost its one to one relationship with the US Dollar during the period of instability. Coin Telegraph, the journal for the crypto world highlights that this morning:
Today’s Ponzicide of the day however has to be the Terra/Luna fiasco. Luna was supposed to be the latest and greatest with the fans of the crypto being called “Lunatics” and proclaiming it was the next great thing.
This morning, not so much:
To quote Bones McCoy of the original and still best Star Trek:
He’s dead, Jim.
This might just well the final marker for the great Fed Bubble as every Ponzi scheme is now starting to break down and head to zero, be it a cryptocurrency made up in Mom’s basement somewhere, to a Peloton, and again the derivatives used to mask the weaknesses painted over with watercolors for going on 14 years now after the 2008 financial collapse.
It’s about to get very, very scary for the rookies but us “old guys” just used scotch to help with the pain. Maybe we should warn the “young’uns” that gas is too expensive so don’t try the car exhaust solution kids. There are a lot more Ponzicoins set to implode once this episode is over, so stay tuned as it will impact the equity markets as hedge funds on the wrong side of that trade will rush to raise cash.