Thread by @MidasTrevor

#3AC bankruptcy can trigger the long and boring crypto-winter for the altcoin market because of 23 DeFi tokens' continuous dump.

Learn about the coins affected and possible scenarios in a🧵

1/10

The previous winter was fueled by the continuous $ETH dump by the ICO projects. They had to fund the ambitious development processes without a clear business model.

It made the crypto market into exit liquidity and every growth was tolerated as an opportunity to sell ETH.

2/10

I was wondering what can trigger such a boring market again. And here comes the full de-leverage of the crypto market by the biggest institutional player with an unlimited trust score for borrowing extra funds.

3/10

Currently, #3AC goes through the bankruptcy procedure, which basically means the full liquidation of company assets in order to fulfill the obligations before the lenders.

4/10

Besides the portfolio of $ETH and $BTC #3AC was one of the biggest VC funds with a portfolio of almost 50 crypto projects.
Now all the vested tokens that belonged to #3AC will be sold during the next few months.

5/10

This is the list of all the tokens that will be affected. Expect the massive selling pressure on those during this year:
Aave - $AAVE
Ardana - $DANA
Avalanche - $AVAX
Axie Infinity - $AXS
Balancer - $BAL
Bastion - $BSTN
Bonfida - $FIDA
Crypto Raiders - $RAIDER
Dhedge - $DHT

6/10

Dydx Exchange - $DYDX
Futureswap - $FST
Gro Protocol - $GRO
Imperium Empires - $IME
Keeper Dao - $KFI
Kusama - $KSM
Kyber Network - $KNCL
Lido - $LDO
Meanfi - $MEAN
Mina - $MINA
Mstable - $MTA
Multichain - $MULTI
Near - $NEAR
Neon Evm - $NNI
Nyan Heroes - $NYN
Orca - $ORCA

7/10

Perpetual Protocol - $PERP
Polkadot - $DOT
Solana - $SOL
Synapse Protocol - $SYN
Tranchess - $CHESS
Woo Networks - $WOO

Evaluate your positions in those tokens accordingly. Divide available liquidity by market cap to see how volatile the asset is.

8/10

Crypto market liquidity is like a net. Liquidity between the markets is connected. And such massive dumps will most certainly take away liquidity from other crypto projects.

It will also affect the VC market, which will make it harder to build and harder to fundraise.

9/10

Take care of your portfolio and your positions. Review how are you exposed to massive capital outflow from the altcoin market and take action.

The worst thing you can do with risk is not to look at it.

10/10