Pic FUD – Trusted Nodes
Doom rocked Twitter this Sunday like no other day we’ve seen in quite a long time.
Luckily, Sunday is for rest, so many may not have paid attention to it, but a certain combination of blockchain “analytics” and hobbyists provided a mix like no other.
First, there was this “hack” by FTX. The only evidence provided for such a hack was that the coins had moved. Moreover, FTX’s Telegram channel said it was a hack.
Now, apparently, this is officially confirmed by FTX’s new liquidator stating “unauthorized access to certain assets has occurred”.
Yet under the circumstances, a hack in the truest sense of the word must compete with hypothetical speculation about potential employee shenanigans.
In this regard, Kraken announced that it has frozen accounts officially linked to FTX and Alameda.
Of course, this “hack” can also be due to those who help the liquidator with the crypto aspect, not being very helpful.
The liquidator, who calls himself Ryne Miller, rather than John J. Ray III, is an attorney who handled the Enron unravelingtherefore probably not familiar with crypto.
Not that any of this matters too much as far as the market is concerned since everyone knows FTX is a mess, but it should be emphasized that there is no right or wrong requirement in fear, uncertainty and doubt (FUD).
The best FUD is of course based on what is true, preferably exaggerated and sometimes framed, such as the mistaken transfer of 320,000 eth from Crypto.com to Gate.io.
This was enough to lead to massive withdrawals of the exchange, with blockchain screenshots of $1 billion transactions to FTX, later clarified by Crypto.com as actually representing only $10 million in exposure.
Facts matter, even when delayed, but the intense fate-based speculation has hopefully reached its peak. A bitcoin trader put it well:
“It’s like every misinformed shitcoiner scouring transactions on various blockchains looking for anything that seems odd.
It doesn’t help that shitcoin exchanges have waited until after a panic to start releasing evidence of reserves: any movement that was probably normal is now flagged as a major concern and anything more shady turns into an immediate scandal. .
We’re not even mentioning all the FUD that is false or baseless, the fact being more than the quantity and intensity makes this Sunday a very rare day.
You could say it’s unlike any other, but November 2018 wasn’t that different. It’s bear depth, so you get bear euphoria with it.
Justified, just as FUD may be true, but why did bitcoin price really care that FTX went down when apparently FTX has no bitcoin at all.
Uncertainty naturally affects price, and its fall is not a surprise, but the reason you reach the peak of FUD is often more because everyone has sold, rather than – or in addition to – real facts.
At that point, no one acts as coerced anymore because they have already sold and maybe even hope to buy lower. So everyone points out every little bad thing and even exaggerates or misrepresents.
That’s not to say FUD may not have a base, but Sunday has largely achieved it, at least so far. So much so that this Sunday had its own FUD “art” work.