Bienvenidos mis ositos, tu siempre eres mis queridos! (Welcome back little bears you are always my dears!)

About a year and a half ago I thought I had it all figured out. I thought by sticking with “safe” projects or being clever would keep my money safe.

What do I mean by being “clever”? There were some sketchy projects with high APRs that I thought I could park my money temporarily and then withdraw before a blowup.

WHOOPS

I was lucky on some of them. Some I took out profits before the APY plummeted. Others I only took a small loss because I practiced reasonable position sizing. I actually put in what I could afford to lose.

I managed to sidestep most of the obvious scams like Bitconnect during the 2017 bull cycle. Back then it was obviously scammy influencers and hypemen promoting the product.

2021 brought more sophisticated scams. They mixed in an illusion of credibility and truth. Some of the projects were easy to use, pleasant to look at, and had good backing from famous investors. Some were even insurable!

The 2021 crypto space (or if you think you’re fancy digital assets) isn’t backed by nothing as detractors say. They are backed by BBC (snicker, snicker) Bravado, Bullsh!#, and Code.

The most painful experience for me personally was the Anchor protocol from the Terra ecosystem.

At the time 20% yields seemed pretty reasonable when compared to the ridiculous 1,000%+ APY on various OHM forks.

They seemed legitimate and plausible. They had debit cards, a Washington Nationals sponsorship, and even some Bitcoin maxis were starting to get interested!

But you know what they say about things that are too good to be true.

Maybe if they hadn’t been so brash and started working on their weak points maybe they would still be around. But we will never know. All we can do is learn from our mistakes and try not to get conned again.

These crypto, cult leaders often have good ideas and possess great academic and work backgrounds. They’re always promising “new paradigms” and new ways to make money from crypto.

I don’t like to name names so names have been changed to protect the “innocent”:

Ko Down, Sani Desta, or Harley Chokinson just to name a few. Or how about “His majesty” Trustin Jon. They all have colorful personalities and still have strong followings even AFTER a debacle!

We keep falling for their promises of a better crypto world. When they under deliver it’s always someone else’s fault. They direct the blame somewhere else to rile up the masses.

Their most devoted followers hang on their every word and rush to their defense even when they lose money.

Even some supporters that raise valid concerns are labeled as FUDsters and burned at the virtual stake.

I don’t enjoy these types of posts as they can be seen as negative but I do like to highlight the dark alleyways in this space so the community can prosper as a whole.

Stay vigilant and keep an eye on your wallet the next time a crypto guru promises you the world.

Obviously none of this is formal financial or tax advice. You need to find qualified professionals in your jurisdiction.

Be sharp, stay hungry let’s get that money!