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The FUD machine is working overtime

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Belemo
@belemo
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As if the crypto market isn't toasted as it is, there seems to be a high level of misinformation being peddled.

The other day, the story broke out that SBF of FTX was somehow going to "buy" the trouble-ridden BlockFi leading platform for only $25m. Both SBF and the CEO of BlockFi came out to vehemently deny the amount.

For what it's worth though, BlockFi had been receiving a revolving line of credit from FTX. The loan facility was meant to enable the crypto lending platform settle their customers.

Recent information later clarified the situation. It was explained that Blockfi could potentially be sold for as little as $250m range. That is a paltry sum for a company valued at over $4 billion last year but such is the wreckage of this bear market.

The widespread crypto recession has claimed many victims and BlockFi, along with Celsius, are just two of a glut of projects going through the wringer.

Flat out lies

In the case of BlockFi, at least there's some truth to the rumour. For Kucoin exchange, it was a flat out lie that hit the airwaves and was regurgitated until people started believing it.

I must admit that some of the memes, like the one below, were quite hilarious.

What we know for sure now is that it was all a lie that manifested from the asscrack of some random on the internet. I reckon it was just created to tarnish the image of Kucoin and the crypto market as a whole.

As much as I'm not a fan of central exchanges because of the whole custodial thing, many of my friends and family are. For some weird reason, a lot of people trust exchanges more than certified blockchain wallets that the exchanges also use to hold their coins.

Anyway, a situation where an exchange like Kucoin goes under is going to be absolutely terrible. Kucoin holders are going to be hurt but the wider crypto market will feel the pain as well.

Forget Luna, if Kucoin or any exchange of that size actually goes under, the entire market is going to be properly screwed. Not SBF bailout fund screwed, I mean epic disaster that will make the current market seem like a cakewalk.

The fudsters know what they're doing and as long as the entire market continues in this range, with extreme fear and chances of even going lower, the FUD will never stop.

Posted Using LeoFinance Beta