Friday September 18 2020
After repeated attempts to punch through $12K resistance, BTC has pulled a Bart Simpson and retraced back to $10K, reaffirming the once resistance-turned-support and is gearing up for yet another knock at $12K. Zooming further out, I cannot help but be reminded of the good old ICO days: if you had a dream and it mentioned “crypto” or “blockchain” in any shape or form, you could and did- receive eight-digit commitments from all corners of the world, no fiduciary duty, no strings attached. 90% is a figure that is often thrown around when asked what percentage of ICOs were scams. So will the ICOs go down in history as a taint of scammers? Perhaps, but what it also did was show the world that you too could raise benjamins for your shiny new idea and it didn’t come with the punishing covenants of a VC. And some indeed went on to build their dreams into unicorns of a company while the bad actors did their thing.
Fast forward to today where we’ve seen $BTC dominance slide 13.3ppts gradually over the course of the year,
as the DeFi platforms command more market share. Why? Nine billion reasons…
So are we heading for tulip 2.0? Sure the price action has many resemblances a’la 2017 but compared to the I-have-a-dream projects, these DefI applications are serving a real-life use case: earnings.
Put your money in a bank, good luck getting 1%. Get your head out of the ground and have a look at the defi protocols. Case in point above, you can earn 100% APY and this isn’t even the high-end of the range. These yielding DeFi platforms will earn you some serious coin — until they don’t.
Scammy exits? Ghosting founders? Sketch code forked? Yes to all of the above and bugs will continue to be discovered but bear in mind all these platforms are still in open beta considering the duration they’ve been around. Investing in them? Well, that's just how it is — high risk, high return. Can’t stomach the volatility? Go camp out in treasuries but be prepared to face rates way below the rate of inflation. I strongly urge you to DYOR but one thing for sure is that these farmers are draining the…