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Binance backs down on FTX deal - importance of actual value stream building

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@badbitch
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“As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged US agency investigations, we have decided that we will not pursue the potential acquisition of [FTX],” Binance said on Twitter.s

It shouldn't even come as a shock that Binance has backed out of the deal, the nature of the company did in fact show to be a bad choice for any investment, pushing through with the deal would be like buying back the tokens they had sold and more.

It would literally be paying part of the debt FTX is areadly incurring and honestly, things might be about to get really messy.

Rekt with a lesson

Most cryptocurrency investors are known to be huge speculators or should we say "money chasers" who ignore everything just for the hell of it and now it's actually being tested.

As it seems, FTX had zero concerns for its users, this is why all security measures was ignored and high risk indulgement for company profits was taken upon, it's rather sad because it will keep happening over and over again.

Exchanges are often uninterested in building more value around its token, the fall of FTX shows that they was not actual demand to back a "potential" sell-off. Usually a token with a community eager to invest will always have some resistance because a sell-off is a cheap opportunity.

But in the case of FTX, the majority of its investors seem to have been speculators of exchange tokens and coins hitting high, considering that Binance BNB did.

A lot of people look back at this and be like - "it will pump" how petty minded.

Lessons from Bitcoin and every other cryptocurrency

There's this huge misrepresentation of what should be "valuable" that actual value systems are ignored for a wild goose chase. After the long success of bitcoin, people began investing in cryptocurrencies with the narrative that it will all do well simply because bitcoin did.

Most of this investment was a bad idea, considering all the scams and rug pulls of the past, all took gullible investors money because the vast majority has a flawed investment mindset.

There isn't value unless something different is being built and there's most definitely no sustainability unless constant development to fuel growth is actually in place. Lots of projects skip this part and just go ahead to sell the idea of replacing several cryptocurrencies that actually have a building team.

Lots more will fail because there are really not many hedges built to sustain and the system is very fragile following this, it takes one bad news for things to move mad quickly and it sure is the season to see all of this play out.

But there's a winning team

Regardless of how many projects get rekt, it's a good thing for the ecosystem because its like a water system, when too many shits gets dumped, it needs to be flushed to see the clear waters again.

Bad and mismanaged projects will need to exit the ecosystem for true value builders to be acknowledged, this allows the system to scale as what has potential is given a chance to manifest without restrictions as the system frees up shits.

Bad projects are always going to fall out at some point, what's important is to not get entangled in the fall.

Thank you and please leave a comment, your thoughts matter to me