If you're reading this, you've been affected in one way or another by the disaster that LUNA/TERRA (UST) has been.
If you're looking for an enemy to cite for historical accuracy, it is the childish creator of the project who's communication skills mirror every angle of a scammer. Experts in cryptography pointed out the potential for this week's scenario months ago. Kwon called them retards. Others warned Kwon to listen to concerns of the structure of backing Luna, to use Luna to back Terra. He scoffed and told them to shut up, because he doesn't listen to poor people.
The lesson we all need to take away, is to know the creators (except for Bitcoin, because knowing the essence of the creator will have to suffice). Same principle applies :-)
So, I'll take this back to some of the worst times I've experienced in crypto. There have been a few.
You may not remember it. You may not have believed it for what it was, but I studied every second of the great hash wars when already rotting, corrupt hearts of the crypto world fought over owning the name and symbol for Bitcoin Cash. Scammer, Sheister, backed by liars and mafioso money, Craig Wright, received a multi-million dollar promotion team to plug a new scam coin based around needing to change the underlying block structure of Bitcoin, joined by a few others, and the 'Bitcoin Jesus' Roger Ver.
Ver, who I used to appreciate for his sincerity, looked awkwardly posed against an overly self-confident Wright, and others.
Their discontent with Bitcoin fueled the desire to fork the 'real' Bitcoin, Bitcoin Cr...Cash. But, as with all partners prior, Wright was impossible to get along with, and he disagreed with 'something something' with the BCH team, and vowed his disdain for both the Real Bitcoin, and the not-real 'real' other Bitcoin, thus partnering with... himself, to create BSV. The two were going to fork Bitcoin, but they both wanted the symbol on exchanges for BCH. Wright, sees himself as the self-claimant to any write he deems himself sole owner, so the decision was made, that the two would have to duke it out. But, sadly the chivalrous days of old where these things were handled by ten steps, about face, fire, the duel instead, would take place in cyberspace.
The Bitcoin Cash team swore to defeat the pitiful BSV. Craig Wright swore that he wouldn't quit until Bitcoin was burned to the m'f'ing ground (which of course, is exactly how the great Satoshi has always conducted himself, so it must be he). The hash wars placed incredible strain on the entire infrastructure, and somehow nobody saw it, nobody got it. You could also literally see how price and hash worked with whatever programming differences that existed between BCH and BSV at the time. Where one was clearly winning in # of transactions, the other was winning in efficiency in broadband availability in programming. If at all interested, it was similar to comparing ye-old Firewire to USB 2.0. Bandwidth used for serial transfer, verses better throughput for fewer signals.
Bitcoin was big enough to bear the strain on its own network. You have to understand, that although a fork requires its own new network to process and protect security, nodes..., every single thing in crypto trades against Bitcoin, and these are two altered models of Bitcoin, competing against Bitcoin, over transactions. Meanwhile, Bitcoin continues trading with, at that time, 2800 other tokens. It also trades with actual fiat and Tether, along with Trust USD. Tens of Billions of Dollars in value were getting obliterated over this greedy, disgusting pillaging of resources and power, and where are they both today? Well, I can tell you buddy, with all of the bravado, neither of them are anything closely, remotely resembling the real Bitcoin.
I suffered. Others suffered. But, still many more ignored the truth. So many, I learned are SO ignorant to fundamental analysis, that they believe the chart drawing 'experts' who cannot correlate their way out of paper bags. It deepened my interest, admiration, and dedication to letting instinct and research guide me through tough times to come.
My particular talent in trading is something I would not recommend to many, or perhaps most. DCA, collect, hold, save and HODL, are good methods for most to acquire a few valuable assets. 98% of day traders burn out and never return, losing vast fortunes. In my case, I am a hard working, diligent personality that doesn't mind long stretches of mathematical punishment for modest returns. I devised a system that I've since perfected, and rarely do I speak of it, because if a stranger under a pseudonym tried to pawn it off on me, I wouldn't believe them. But, what I prefer to do, requires very low fees, because I like to actually make moves with the movement of the market, and 99% of every good technical opportunity happens in dips and peaks that are smaller than the fee structure of most exchanges.
This is important to understand, because in the first few years of serious exchanges after Mt. Gox, they understand the correct incentive structure: charge 0% fees for makers who bring liquidity (or even offer them a rebate), and charge takers for removing volume from the order books. I would seek out an exchange that ticked all of the boxes; trusted leaders with a page that tells me who to research, good volume, good liquidity, and numerous sites giving real reviews. If there was a hack, how did they handle it?
The Exchange Scammed Us all
I started trading on an Asian exchange run by a well-honored and respected scholar, friends with CZ of Binance, worked with Huobi, friends in all the right places, wrote the book on platform coins- originated the concept that led to BNB coin for Binance. 0% fees for top coins. I even created my own both to help me sell limit orders quickly. I traded with 100% accuracy there and was a part of the community. That person had been hiding the secret that their lending/staking pool was completely underwater. He lied, pretended there were technical issues, the site lost sync, then claimed community members locked him out and ran off with accounts, and then admitted to losing tens of millions and trying to fudge ways to earn it back. Sound familiar?
We were devastated! People had faith in this guy, because of his reputation, not in spite of it. In China, people hunted him down. They stood vigil outside family member homes with megaphones. By the way, this is how I learned of an outbreak 3 months before the rest of the world- another long story.
For weeks, our small community stuck together. We were relentless. I was published in Asian newspapers, we exposed things to reporters that were silenced by the CCP, we connected with Twitter influencers, part of why I am so deeply connected to crypto twitter as a community now. This brought out a sense of humanity to the CEO, who came out admitting he had lied. He shot straight about how little money was left, and that he would create a first-come, first-serve lottery process for people to get their funds returned, until the funds ran out. My two accounts were among the very, very, very few that got their funds returned, and I cannot tell you the relief, after weeks of killing myself to stand up for this group of people. I made e-friends from India, Ireland, Canada, you name it. I helped people develop better trading systems, we helped each other hunt down good platforms to try doing what we had before, etc. We got through hell together, but mine was about to continue. I have absolutely zero question in my mind, that if we had not been diligent, villagers with the torches, this guy would have just disappeared with $19M never to be seen again. It was a miracle.
The Exchange Didn't Want Me to Win
Same level of scrutiny, I found another exchange with great volume, partly sourced from Binance, with a rebate for maker fees. I traded, of course once again, at 100% accuracy. They were not pleased at my accuracy, and were certain I must be cheating somehow. They locked up my account. I am a praying man, but it doesn't mean I didn't struggle with my faith. It was a painful chunk of time once again. You see, this is what I actually do for a living. If I can't earn, I can't have shelter. I am not a risk taker, but I knew these were risks that come along with trying to accomplish something that is worth the risk and trials. Once in a lifetime. With a single helpful customer support person who believed my real personality, clearly not underhanded behavior, I struck a deal with the owners of the exchange. We can all share in the truth; I shamed them, by doing too well at regular spot trading. They did not like someone making a profit off of them when they were hard-selling Bitcoin futures where everyone loses all of the funds. So, something had to be wrong for me to earn. I gave up weeks of profit just to get my principle off of the exchange. Narrowly escaped pure loss once again, but understand, this is now several months I had earned far more than needed for survival, and it was all taken away.
The Exchange Had A Glitch
Third time, yet again, highly known exchange with huge numbers of traders. I felt the scammy vibe, but accepted that we are all taking risks, and they had very, very, very few incidents. I spent time in their Telegram to know how they handle support. Their helpers were large in number, but very insincere, very inappropriate, childish, sometimes rude. But, I found that if one took a very clever approach, they could actually get assistance. I decided it was worth the risk. For a third time, I traded at 100% accuracy. This time, they had to go into maintenance for several hours, unannounced. This was now a trigger of PTSD for me, since it was how the first site scammed everyone- sudden maintenance page.
When the site returned I was so relieved, except, I was missing the Ether from my most recent trade. Oh no, what now? At around that time, I believe ETH was worth just under $400. I had traded on their platform just long enough to where I was around $400 in profit. The exact amount, was exactly the size of a single ETH, and a single trade I had entered, was now gone. How on earth do you get immature Telegram-group support to understand a technical glitch caused your most recent transaction to disappear? Look- I had 'x' amount, see that trade? That exact amount is now gone! Look at my trade history- it goes blank exactly when your site went into maintenance.
This went on for days. I was asked "why you gotta be so... meh"?
Not exactly the kind of help we long for. In the end, the remaining funds needed to withdraw from the exchange, were locked up in the glitch that could not record to their database correctly. I caved in, placed a tiny amount of funds into the account to get it released and removed, feeling the grime of scam all over me, knowing how similar this was to the actual Telegram scammers out there who pretend to be exchange support, and now I was dealing with the kind of thing you never think will actually happen, a third time!
I was SO very blessed in all of this. You can say "you shouldn't have been on 'x' exchange". You can say 'not your keys' and a million other things. Listen, don't blame the user for trying to make use of exactly what these cryptocurrencies are made for. If there is anything that Bitcoin, Litecoin, Ether, and thousands of others are designed to do, it is to transact fast, and with efficiency. I desire to earn a great profit from doing so diligently. I outperform every bot I've tested, by trading manually. I've been on probably 40 exchanges. I've helped DEXs with their protocols and trading systems. I get what makes a good platform. I accept there is terrible risk involved in all of this. Still, it has all been cleaner than what I see our governments doing every day.
So, when Luna, Terra comes along, I smelled it from a mile away. I warned against what they were doing.
All of this experience is to say, you are not alone!
If you believe in a project and it lets you down, especially if you have everything you've got tied up in your belief in it, I understand! I get it!
I've never had much in this world. What I have, I have slaved to get. Right now, I've earned amazing percentages, but my overall value is super low, because the bear is clobbering us all. Someday, I hope that Bitcoin and others do what I anticipate they will do. When they go up, my remaining positions will be in profit again, and matched to actual years of profit, I will rise from the ashes a success! Or, the govts will ruin it all and I'll lose big.
I'm not a gambler, any more than if I drove to/from work, I'd risk a flat. For those in remote work like myself, an internet connection is a gamble. A computer staying powered on is a gamble. Do not blame victims in this field. Blame the victors!!!!!!!!!!!!!!
Bad actors deserve time in jail. That includes Kwon. If there were any others attacking their system, they were likely acting on behalf of the IMF. I have a feeling that wasn't necessary, but we will see... probably not.
The moral of the story, is to stick together.
We may disagree on a myriad of things, but if you got hit hard by Luna and Terra, do not harm yourself. You are irreplaceable and have eternal value to your Creator. Tokens will come and go, and money is a means to survive this tough world. You, are the precious store of value, not anything you own.
Remember that, wipe the dust off, and start dreaming big for the next thing you set your plans to. Don't be afraid to take calculated risks to win in life. Let yourself heal, and reach out if you feel you're at the end of yourself. God bless you- you'll get through this.
And on that note, Crypto Gordon Freeman, caring about those who get harmed, telling you to live to fight another day... for now, out.