Thread by @thekiloalpha

Don't hate on the bottom sellers, they give you the juicy entries. To clarify, I didn't sell everything but I did take some off the table.

https://twitter.com/thekiloalpha/status/1667713724625608706

#defi is kinda like a guy exercising, running around in the sunshine and smashing pushups. At the end of the hour he goes back to his cell. Freedom was an illusion, temporary. DeFi is only permissionless until the regulators hit the stop button.

But isn't my coin unconfiscatable & uncensorable? Sure you can trade your coin back & forward with each other but in a vacuum it's meaningless. What good is a crypto asset if it's unable to be traded for anything?

Sure you can earn & trade it for real world items; even cash p2p. But when the fiat on/off ramps are gone it's all childs play. Reality is the US Gov are the world police, you follow their orders.

Iraq had no WMD's and a million innocent souls were blown up and an entire nation destroyed because #freedom. The US Gov has always committed atrocities "for your safety". They are going to save y'all from crypto whether you like it or not.

Nothing is unstoppable or uncensorable since ISPs & RIRS have control over IP addresses, not that they need to take action; we saw what tornado cash did for eth addresses. Makes it very difficult to be *free* in crypto land when the source of your eth is blacklisted

So where do I think we're headed? Full scale war on crypto. The value of alts zero, $eth low hundreds and $btc back to single digit thousands. Not all at once, first alts destroyed, then $BTC/$ETH pumps for the exit from stables then full collapse.

$USDT & $USDC are worthless the moment US Gov freeze their assets (definitely happening). We run for the exits (fiat) from whatever local exchanges are left. Liquidity quickly disappears (no demand thus no fiat). What's left is $BTC/$ETH so they pump (exit valve)

The bubble pops almost immediately as there's zero demand for $BTC and those who have exits available take it. It's all over at that point...

From there crypto reverts back to blockchain/DLT R&D with traditional funding with no L1 native assets being tradable. Bitcoin survives long term as digital gold. The first and only permitted digital asset.

Even if this doesn't happen (and i'm speculating worst case here), many #defi protocols are fucked. Nothing is off limits. Let's take thorchain for example, it's as easy as a freeze (usdt) & blacklist(usdc) and your vaults are done.

If the US Gov really don't like you, there's always OFAC sanctions / SDN list. How does the entire $BTC vault being added to the SDN list sound? Proper fukt. Likely? No. Possible? Yes.

The point i'm making is that crypto bros are in denial thinking the death of CEX means DEX triumphs and crypto lives on. Sorry brothers it's all over. So we better get behind coinbase & binance and hope we can oust gary g and change the SEC's approach to crypto regulation

In terms of markets, there's no demand so we're all pvp for now. Since the SEC is gunning for us players are risk off so if you're holding strong well done but don't discount -90% on your -90% bags.

For me this isn't just the usual bear market with some FUD thrown in for good measure. Since 3ac, luna & ftx we've been fukt. Inflation bubble popped and uncertainty everywhere particularly in banking. Operation chokepoint is real.

The risk profile has changed, many risks have materialised. Playing in this space is dangerous, the risks are higher, the rewards are lower. YMMV but i've derisked and focused on preserving capital. Hurts to sell off assets this low but it's better than $0.

As someone who had millions of $RUNE @ ATH and didn't sell; i'll always run nodes... i'll never sell out totally and will go down with the ship if that happens. I've derisked and won't be holding onto USDT/USDC. Take this rant with a grain of salt... i'm a nobody