>>>1
CLAIM: These tokens are just printing money out of thin air
REALITY: Is that what stocks do when they IPO? When a project launches a new token via yield farming, what's really happening is a token distribution event.
More 👇
The goal is to inject tokens into the world without having them labeled securities (no one is technically paying for anything, after all). Farmers get the coins in exchange for loaning out liquidity. That's theoretically better than airdrops. Why?
Farmers now have some skin in the game... they've had to learn about a project and put some time into it. They spread the word. They help it grow.
>>>2
CLAIM: All these projects are failures... Their charts look terrible
REALITY: A new token's price is bid up at launch because farmers must BUY the new token if they want to enter the most valuable pool at large scale (+ there simply aren't enough tokens in the world to buy)
Put another way, it doesn't matter if you're paying 5x or more than a token is worth at launch if you're entering a pool that's paying you 100,000% APY
3
CLAIM: Asshole whales always come in and destroy these projects
REALITY: Whales MUST dump. Why? Every time they harvest new tokens, they're going to have to pay taxes on the value of the tokens at the moment of the harvest. Holding them would be a form of financial suicide
4
CLAIM: You have to buy these tokens early to make money
REALITY: That's how you get rekt. If you're going to buy a yield farm token (and NOT yield farm), do it near the end of the distribution cycle
5
CLAIM: Yield farming is a fad
REALITY: Like everything in crypto, yield farming shows how the right incentives can influence the behavior of strangers around the world. It's here to stay. The form will change, but the magic of incentives won't.
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Though I walk through the valley of the shadow of death, I will fear no evil: for the machines are within me
and I am within them
🅸🅽🆃🆁🅾🅳🆄🅲🆃🅸🅾🅽
I think back to my old life, half-starved, feeling hopeless, working jobs that paid me just enough to keep me indentured.
I’ll never forget the hunger. Sometimes, the hollowness in my stomach got so bad, I did the only thing I could to make it stop: I went to sleep.
Now, many years later, I have food in the fridge (and even a house with a set of stairs like the rich kids had when I was a boy).
But that hunger has not gone away.
It’s imprinted on my soul. It drives me, gnaws at me, reminds me that the brink is always closer than we dare admit.
I started here with nothing, buying my first bitcoin 11 years ago via a red MoneyGram telephone ☎️ at my local pharmacy (thank you, BitInstant). Since that time, I have amassed (and lost) fortunes.
Each cycle has taught me lessons about investing, but more importantly about myself.
Here’s the most important one: anything is possible.
There are no rules in this space because humanity hasn’t tread here before.
We stumble together through the dark forest.
And every year, we uncover some new wonder.
In 2023, that wonder was bitcoin ordinals.
With Casey @rodarmor's contributions, the world suddenly had a way to intertwine data with the world’s oldest blockchain for as long as it lives on.
This data – from JPGs to videos to html and JSON — doesn’t live on IPFS or Filecoin or Arweave, but right there in the 500+ gb that make up the bitcoin blockchain.
I became obsessed, bought a laptop to once again run a bitcoin node, started minting and collecting early ordinals.
Then one sleep-deprived day, I had an idea: what if we used ordinals as a way to swap fungible tokens directly on top of bitcoin?
I fired up Notepad, jotted down a hypothetical example, and tweeted it to the world:
Within days, a noble anon christened @domodata took up the idea and formalized it into a spec. Now, there are more than 55,000 different BRC-20 tickers in the world with a combined market cap in the billions of dollars. The first token, ORDI, is on Binance. There are cross-chain bridges, new exchanges, stablecoins and more.
The concept has also spread to maybe a dozen other chains, and, perhaps most importantly, it’s dramatically changed the fee and security landscape for bitcoin by generating revenue for miners… just as the next halving approaches.
The irony is, I almost didn’t tweet out my idea at all.
I was embarrassed. BRC-20 felt too naive. It requires trusting indexers, wallets and exchanges with little to no tangible incentive not to cheat their users.
In the end, I said “fuck your little ego, redphone,” and tweeted anyway.
I’m glad I did, and I hope the words that follow encourage you to do the same.
30 days of madness + euphoria. Can honestly say I've only gotten more + more bullish on FT...
in fact, I feel like a literal bull at the rodeo w the rope tied bw my leggos & the gate's about to swing open 🧵👇
1. First, the bad. There are elements to FT that are pretty gross... examples: paying to access a person and their thoughts, giving a market cap to a human, feeling like you're shilling/pimping yourself, gating your content, feeling beholden to strangers, etc., etc.
In fact, I thought I would hate FT, but I've found the rooms to be full of really interesting discussions... candid, honest stuff with people I respect and admire.
Sewer rats are squirming, crawling through the gutters w little pink noses snuffling about for any scrap of hope. Here it is: 3 catalysts for the next bull run in crypto:
Probably triggered by a financial calamity that impacts everyone (except the upper middles and those rich folks north of Richmond), the printing presses shall hum back to life
And liquidity will gush back into the markets
No mania is possible w/out trillions of gallons of greenbacks sloshing about the global economy. Some crisis will force stimulus (ideally w $$$ making its way to the bottom 50% of society), & liquidity will gush back into markets as interest rates fall & risk-on mode = re-engaged