It seems like with every week that goes by another one of these shitcoin casinos go bust, and boy am I enjoying the fireworks. First Celsius, then BlockFi, Babel Finance, Voyager, Then CoinFlex and now Vauld. Having been a customer of Celsius and BlockFi in the past and even shilling refferal links for a time, I eventually pulled my money out and cut ties with these companies, well before their collapse.
Once I realised trying to earn yield on bitcoin was dumb, it all started to click for me and I was so fortunate to get out in the time I did. Unfortunately for others, they felt the risk was worth the reward and now they might never get to claim a reward and enjoy return free risk.
As collateral and liquidity contagin hits the CEFI market's we've seen platforms seize up in a big way and Vauld is the least to fall. The shitcoin lender Vauld on Monday paused all withdrawals, trading and deposits due to "extreme lack of hedging" and are now exploring potential restructuring options.
The bank run extends
Vauld claim that a massive number of withdrawals took place on June 12, the same day Celsius paused operations, while Blockfi’s co-founder Zac Prince noted that his company witnessed a significant “uptick in client withdrawals” that day as well, as people rushed to get their funds out, Vauld was unable to meet obligations and thus bad to close up shop.
Vauld isn't some fly-by-night operation, it's a Singapore-based firm, and is backed by well-known firms like Pantera Capital, Valar Ventures, and Coinbase Ventures. So it remains to be seen if those exposed to it would be willing to save the company.
The company also looking to sure up positions, sell off assets to increase liquidity, and have reduced its staff by 30% to try and free up cash to remain in operation. It's unfortunate for the staff, but depositors are also in an unfortunate position.
Not only is Vauld downsizing but its marketing expenditures have been reduced, lowering hiring efforts, and slashing executive salaries by 50% all in a bid to get lean enough to survive this period and the upcoming extension of a bear market.
There is no innovation
There is a lot of optimism in the shitcoin space, as if people have discovered fire or some sort of new way of creating energy, when all it is, is the same financial shitfuckery from wall street but with tokens, its hardly any different.
As the market participants figure this out one shitcoin blow-up at a time, they will stop investing in these things, stop taking risks, be more cautious, or so I hope. Some of them do, most I suppose continue to head back to the casino to wreck themselves.
Greed is a wonderful emotion to watch it smack people in the face, time and time again. While it may be a loss to these people, it sure is a gain from my vantage point, as it makes for good entertainment.
Sources:
Have your say
What do you good people of HIVE think?
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Posted Using LeoFinance Beta
It's a good thing you notice trying to gain yield on Bitcoin was a bad idea and you withdrew.
Now, that it's vauld turn to collapse, I wonder who is next on the radar
Posted using LeoFinance Mobile
Pretty sure there's a few exchanges that are next
We'll keep watching them drown in their ponzi then
The bear market has really exposed a lot of coins instability. When there is no strong foundation or backing. There is always catastrophe. Hive for instance has a very strong backing and foundation.
Investigate before investing. Research so money won't be lost.
Nice Post.
I hat that generic statement do your own research if people did their research we wouldn't see them falling for these scams. Hive has no backing, you're having a laugh mate, just because you get a few tokens don't mean there's anything behind it, its a sinking ship like the rest of the shitcoin market
Having the backing of humans is enough backing for survival. MySpace social media didn't survive not for financial sake but less human was backing in. Facebook and twitter despite their disadvantages has more human backing and they are still surviving.
Mark bought WhatsApp for a reason. Now there is a significant link between WhatsApp and Facebook.
Human backing/validation is needed for survival of anything in this space.
Cheers 🍻
None of that shit you mentioned has a gamified token paying for the servers, they have monetisation, tactics, hive just monetises people who have no idea what they are doing
Can you elaborate more for better understanding?
Thanks in anticipation
Those social media apps earn revenue by running ads to their viewers that ad revenue keeps the business growing and maintains the system
HIVE just rewards the witnesses with a bunch of inflation and for them to get paid from that inflation they have to sell the token for them to sell the token their needs to be a buyer on the other end
So their rewards have nothing to do with the success or failure of the product only the amount of liquidity coming in by selling people false promises
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