Dear Faria Limer who thinks you understand Bitcoin: Welcome to hell

Arriving at the office at 8 am, reading some reports, answering e-mails, participating in the morning “call”… the “Faria Limer” routine is always very similar, regardless of whether I work on the buy side (managers and insurers) or sell side (brokers and advisors).

Traditional markets, or TradFi in their language, operate exclusively on weekdays, during business hours. In fact, many of these associates and VPs (a position just above the intern) cover Europe and Asia, so it's common to have shifts, or be forced to answer emails on the weekend.

Paint whatever scenery you like, but this routine is a scooter ride on a quiet autumn day when compared to cryptocurrencies . This pressure they imagine exists is nothing close to our flash crashes , rug pulls , and amateurism.

"Amateurism is good, I'll get rich"

The problem, my dear “Faria Limer”, is the impossibility of validating the information: volumes, trades, book of offers, open contracts? It's all in the hands of the exchanges , and you have no way of knowing if you're receiving delayed, adulterated information, or if someone on the other side is seeing your stops .

The largest exchange in the US, Coinbase, was caught inflating the volume by 98% of the Litecoin cryptocurrency, and paid a measly $6.5 million to get rid of the problem. On the Chinese-origin exchange, Binance, derivatives created to gain in the short dropped in the May crash. Instead of taking the shit, they decided to delist the assets.

This week there was a "problem" in Binance's Ether futures contract, affecting "some customers." But rest assured, they steal a little of every trade for the insurance fund to cover this type of loss. Yes, seriously! Exchanges charge a fee for this in futures contracts.

Not to mention the countless decentralized finance platforms (DeFi) and projects that claim to have been hacked, losing fortunes. In this universe of smart contracts , non-fungible tokens (NFT), and launching of tokens with pre-investor rounds, there are awards for influencers , and every kind of possible and imaginable “scheme”.

Wait, at least the “big” coins are serious, aren't they?

Right, right. Clean. Tether, the supposedly $70 billion dollar-backed currency, has just been fined $41 million by the CFTC for… guess what? Have only 27% of reserves in cash and equivalents.

Litecoin, the one with the manipulated price and volume? The founder confessed to having dumped everything on the Muggles at the peak of 2017, and there was virtually no further development in the currency. It is still alive among the 15 largest with a capitalization of US$ 13 billion. Anyway, the vast majority are worth absolutely nothing, however, with a little help from exchanges , and a lot of marketing, miracles are possible in this market. Want to pay to see? Fall into the jungle!

The post Dear Faria Limer who thinks you understand Bitcoin: Welcome to hell first appeared in Bitcoin Portal .

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