The Coming Collapse of All Crypto.

so i just got back from a run and was

wondering could the entire crypto

ecosystem and economy collapse like

literally all of it tokens nfts the

entire nearly 900 billion dollar market

cap

everything collapsed it would literally

be the size of tesla just going bankrupt

in this recession and while that sounds

like a lot of fun there are three very

important things that you need to pay

attention to so that way you could

identify red flags of that kind of

potential for collapse happening

we're going to talk about them right now

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all right so let's now get into the

first of a three potential catalyst for

the doomsday the first is ethereum 2.0

now i know what you're thinking oh my

gosh here we go another uneducated

potential ethereum 2.0 withdrawal fund

story well actually what we're going to

do is we're going to refer to an article

from data always who

is a superior ethereum bull and has some

incredible analysis and we're going to

talk about

some of the arguments that he makes and

then we're going to connect these with

potential conclusions in terms of

what it could mean for ethereum okay so

let's talk about this in case you're not

familiar which you should be at this

point but that's okay in case you're not

familiar at this point ethereum

merge is possibly going to come at the

absolute worst time for the crypto

economy ethereum 2.0 is designed to

coordinate the network into the beacon

chain by slowly making it impossible to

mine or validate crypto through proof of

work and instead we'll be going to proof

of stake so no more dirty mining will be

going to staking starting likely at the

end of 2022 with sharding following in

2023 and no i didn't say sharting your

pants uh but uh you know if you're

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raise the price again dang how is that

for three pitches in three minutes but

folks

today

we have over nine million ethereum

tokens locked away

waiting to be

unlocked

hence locked away waiting for the beacon

chain and this sets up for a massive

potential danger to the crypto economy

which would of course coincide with what

could possibly be the first great

recession since the last great recession

in 2008 and given that crypto has never

lived through a recession and instead

was born out of a recession ignoring

obviously like the six-week pandemic

recession we had

this is interesting the ethereum merged

ain't coming at a great time now the

developers of ethereum are acutely aware

that by having nine million ethereum

tokens locked away and then allowing

them to unlock upon the staking

or the move to proof of stake may flood

the market with ethereum at quite

literally the worst possible time as

such ethereum developers are considering

limiting withdrawals to two types of

withdrawals first partial withdrawals

where validators will be able to draw

down to 32 ethereum the minimum that you

need to be a staking validator and

basically draw down any of the excess

and with current estimates of the amount

of excess ethereum stakes per validator

which isn't actually that much over 32

ethereum validators who want to

partially withdraw from the network

could probably do so in about 12 to 15

days now of course there will likely be

some form of limit on the system in

terms of how many withdrawals we could

see each day and a certain number of

withdrawals per epoch and there are 225

epochs each day

and the current estimate according to

data always is that we could see

somewhere around 800 000 ethereum dumped

on the market each week for two and a

half weeks but our trading volume right

now sits around 4.9 million ethereum

traded per week so really

adding 800 000 ethereum for a couple

weeks would probably only represent an

additional pricing pressure of about 16

of supply for about two weeks now that

could lead if you compound that to about

a 35

a drop in ethereum prices because of

this excess supply

but

the argument that's made in the crypto

community is don't worry we'll be able

to absorb all of that excess ethereum

okay fine but that's partial withdrawals

and so now and this is the part that's

totally up to speculation we have to

determine how many validators who

currently have staked ethereum or

stakers who are part of validating

networks how many of them are going to

fully withdraw from the ethereum network

versus partially withdraw or just

straight up huddle obviously if everyone

fully withdrawals will have problems but

that's also where ethereum developers

will likely have some form of limits

currently the limit is five validators

can withdraw completely from the network

per epoch remember there are 225 epochs

per day now this limit could change we

might see 10 per epoc at lockup and the

estimate here from data data data

analysts excuse me is the potential of

about a supply of 65 000 to 80 000

ethereum in addition to the partial

lock-ups per day that in my opinion

would represent an approximately 10

additional supply hit or an additional

availability of 10

on the daily traded volume for ethereum

that would represent an about an

additional 10

supply every day for probably the first

few weeks of the ethereum merge which

could compound on top of that 32 to 35

percent from

partial withdrawals now that doesn't

again necessarily mean that prices will

come down this much because again people

could be buying the dip and we could see

a lot of stability here and after all

these estimates are being brought to you

by a blog post by

someone who's really a staunch

enthusiast of ethereum and they're

clearly very well educated in ethereum

well the writer of these estimates

themselves calls themselves bullish in

fact they say i remain as bullish as

ever they do also say that quote a

contentious and panicked unlock event

with large profit taking

could however be market destabilizing

and a relatively long lasting event

they're in effect warning you of the

danger to come now even though they are

bullish because they see ethereum as a

once in a generation investment

opportunity

the excess supply that we could see

through both partial withdrawals and

full withdrawals

could substantially destabilize the

ethereum network if we don't have a

clean bridge and a limitation on how

much people can withdraw from the

network

but the market should be able to absorb

it right

maybe this is where we get to part two

of this video which is the unofficial

federal reserve

binance nftx see binance whom today

bloomberg described as the shitcoin

casino with empty offices in dubai and

an unregulated gambling coordinator boy

that sounds like something a mainstream

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today but anyway the ceo of binance just

saw his net worth tumble from over 90

billion dollars to just 11 billion

dollars and i did say

just 11 billion dollars it's still

pretty incredible but it represents an

88 decline but anyway

these two firms fdx and binance are

arguably the biggest in the crypto space

and you know what they're doing

they are swooping into the rescue when

we have problems in the crypto space

it's literally exactly what they've been

doing as one of the largest crypto hedge

funds three ac with up to about 1.18

billion dollars of assets under

management because that hedge fund

completely disappeared because they

probably lost all their money and all

that 18 bill went up in smoke especially

when in may they told us they only had

about three billion dollars left and now

they're not even answering their voyage

or digital margin call which that's a

whole nother story

who comes into the rescue again the

unofficial fed which i call the

unofficial fed ftx and binance

there's a problem with ftx and finance

though i'm going to talk about that

problem in a moment but i just want to

hit on that tangent with voyager digital

voyager digital the canadian crypto

exchange had about 2 billion dollars

canadian dollars in lent crypto

but of that

666 million so basically a third was

being lent to one

hedge fund three ac

that means they took customer deposits

and literally 33 cents approximately out

of every dollar they received they lent

to one hedge fund

that seems grossly irresponsible like

how could you not diversify more that's

insane that's way too much risk

anyway that led over the weekend voyager

digital likely to fall under a level to

the point where if all their customers

wanted to withdraw their money voyager

digital wouldn't have it they were

upside down likely based on what i saw

in the financial statements

now

ftx and uh the owner of ftx embankment

freed came in to bail out voyager with

the substantial loan of somewhere

between 300 to 500 million dollars the

owner of ftx has about a 12 stake in

voyager digital with a cost basis of

about two dollars and 34 cents for a

stock that's now trading for roughly 50

cents ouch this is important to know

though because what does it show you it

shows you that companies like ftx and

binance even though they're trying to be

the unofficial fed there's a chance

they're throwing really good money after

bad

even binance

got burned by for an amount of 1.6

billion dollars on the tara luna

explosion or implosion i should say

and these companies right now are going

around trying to prop up as many

different companies as possible even ftx

now providing financing to block fi

and rumors circulating including this

email that happened to come out of

nowhere that uh oh even blockfi might be

running into some trouble after getting

a bailout from ftx yikes but anyway

when companies act as a de facto jerome

powell what they do in the short term is

they prop up coins they pop prop up

tokens and they prevent bankruptcies

from happening that should happen

the problem with ftx and binance though

is they don't have a money printer and

while blockfy coinbase robinhood and

many firms are laying off individuals

finance is pretending they're hiring

people

not actually hiring people because

apparently bloomberg questioned the

authenticity of this and that the staff

at binance said oh well uh

the photo of the ceo of binance uh

photoshopped on a model with him uh

hiring that was just a joke

folks

i don't know about you but i feel like

we've got two goliaths binance and ftx

both of which have a lot of power in the

crypto ecosystem and if they run out of

money because they keep making

investments that aren't that smart like

throwing money into voyager digital at

two dollars and 34 cents

well then at some point they're going to

run out of money and if the ceos run out

of money because they spent all their

money on bailouts for the rest of the

crypto economy

the crypto economy could face some

massive pain

the next time we see liquidations of the

magnitude that we saw over the last few

weeks with billions being eradicated in

24-hour periods

so buckle up especially if

that same sort of liquidation event

happens around the same time that we see

the ethereum 2.0 merge

but that brings us to fudd case number

three

stable coins now i've warned about

stable coins since the end of 2020 and

the fact is they absolutely mask the

true amount of leverage that is in the

crypto ecosystem most advocates of

stable coins like to say that well i

have usdc i could redeem it for a dollar

at any time and while it's true that one

dollar of usdc is technically equal to

one dollar it is not true in the event

of a panic that's because when you

deposit one dollar into an exchange for

a stable coin yes you have the right to

that one dollar but most people who have

money in usdc enable yields

yields are only possible when you

actually agree to lend out your money

you're lending your stablecoin don't kid

yourself it is not redeemable for a

dollar if it's lent out in a panic your

stable coins are not a savings account

they are an iou and as long as markets

are going up and things are stable your

iou can be cashed for a dollar but if

you're just the 20th iou in a chain of

ious called rehypothecation

and the last person in the chain is an

18 billion dollar hedge fund like 3ac

your stablecoin

uh iou may end up being worthless

in the event of a crypto collapse and

this is where i believe we face a

massive triple threat in the entire

crypto ecosystem the ethereum 2.0 merge

coming in a recession is absolutely the

worst time possible it should be delayed

number two

the binance ceo and the ceo of ftx are

going to run out of money at some point

if they have to keep bailing out

companies

there won't be any money left because

there is no money printer

and then liquidations will cut deep

because nobody's bailing it out and

number three

when true panic comes stable coin

leverage will finally get exposed

and folks this is why i urge you to be

cautious i'm not here to fud i am here

to provide perspective and if you

haven't thought about this triple threat

consider sharing this video

and helping somebody else be aware of it

as well and if you have comments to add

leave them down below check out those

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see you soon bye