Coinbase Is Coinfake

No, Coinbase is not different than FTX. It’s in the name: crypto, currency. The theory is that encrypting currency is a good thing. They say it will create more transparency. But it didn’t. It won’t. That was never the point. The point of all of these things was to destroy capital, and degrade trust in financial markets. It has never been more plain & simple than now, with the collapse of FTX. All it took was a promise of margin calls, which instantly triggered margin calls, that immediately identified the epicenter.

Coinbase and other crypto apologists will be on their stump for the next few months attempting to salvage what everybody knows is done. It isn’t just regulation that’s needed, like Kevin O’Leary (who I have lost all respect for) says. The entire way that Coinbase and these others think of currency, and blockchains, is wrong. They have always been wrong. Even if they claim to have invented these concepts they just coined terms and then abused them into Ponzi schemes. That’s what finally popped.

Fundamentals Are Alien Now

Do not believe representatives from Coinbase, or any other cryptocurrency, nor any “exchange” involved in that business. There is nothing legitimate here. Not the technology. Nor the fundamentals. It is, at best, an interesting idea to think about when you’re on psychedelic mushrooms. But even tripping absolute uncontrollable balls, I would be cognizant enough to not give a crypto fraudster my $.

If you aren’t capable of being as fiscally responsible, you shouldn’t be an investor.

You definitely shouldn’t be a trader of securities, and you definitely ought to avoid phony prop bets. That is what cryptocurrency is. It’s a prop bet. The kind of way you can legally gamble with your buddies on the golf course as you bet on who will have a better hole. You could bet on if the Cowboys get a 1st down or whatever. Those are all innocent examples. The truth is that with cryptocurrencies, what you have are compound scams. People leveraged legitimate bank loans and mortgages against these type of accounts and vice versa, and both ways. That is the kind of thing Sam Bankman-Fried did.

You Can’t Make Money Out Of Nothing Without Lying

They treat it like alchemy. You invest $1,000, and at the end of FTX’s program, you effectively think you have 125x that amount, or $125,000. Now, once you’ve reverse washed your money, and you have an asset that bankers actually also invest in, they would see that $125,000 and might give you up to another $1,000,000 on margin with a 10% interest rate. You see? An actual $1,000 became a $1,000,000 liability.

What people forgot along the way in this intoxicated debt environment, is the fact that there are a number of individuals and institutions whose balance sheets claim there is a $1,000,000 asset/liability which needs to be paid back and another $100k or more. If the exchange that the $1,000 was inflated on disappears, there were other obligations made on the basis of those account balances which would not be accounted for even within the 130+ company structure of FTX. That is another series of ticking time bombs. These things will be blowing up over & over again for the next 6 months.

It used to be that a bubble was created at a time. The dot-com bubble. Or The housing crisis. However in the case of modern markets, what you’re seeing is more of a micro-bubble phenomenon where a bunch of smaller bubbles got linked together via these very large VC funds, hedge funds, and money management companies. Cryptocurrency was just an offering from these bubble factories.

What Should You Do If You See A Unicorn? Kill It.

Think back to the idea of a unicorn. A very novel, $1,000,000,000 start-up valuation. This is what Facebook and their cohort once aspired to be. These days this is considered small potatoes though. In the case of Sam Bankman-Fried, Coinbase, or these other fake entrepreneurs, their aspirations now stretch to the trillions. Just like Zuckerberg once reached a trillion dollar valuation. Or as Apple is currently sitting with a $2.2 Trillion market capitalization – people ignore Apple is equally as inadequately capitalized as FTX was. Coinbase is no different. No token is unique. They’re all empty & meaningless. It is not real, it won’t ever be real, and the people who perpetrated this new exactly what would happen.