Why the Collapse of Crypto Infrastructure is a Positive Shift
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Chapter 1: The Illusion of Crypto Wealth
A few months before the COVID pandemic changed the world, I attended a lavish crypto event in San Francisco, funded by the Tron team. During this gathering, I had an unusual exchange with their eccentric founder, Justin Sun, who was treated like royalty due to his creation of what many viewed as an Ethereum rival. However, in reality, Tron bears little resemblance to Ethereum and may barely rise above the status of a scam.
Today, Tron, like numerous tech projects focusing on the metaverse and AI, is cloaked in enticing marketing jargon. It's easy to feel tempted to invest in such flashy ideas, but ultimately, Tron has contributed nothing of substance to society and has likely caused financial losses for many investors. Despite this, Justin Sun has amassed considerable wealth, which is probably why he is idolized by some.
Regrettably, many individuals caught up in the crypto frenzy equate the pursuit of cryptocurrencies with success. In truth, 99.9% of current cryptocurrencies hold no real value or utility, yet billions are exchanged daily. Over the last 24 hours alone, crypto exchanges saw over $100 billion in trades. If we were to extract any genuine benefit from these projects, the yield would barely fill a thimble.
No current crypto endeavor provides any true value to humanity. While I once developed a concept called "CityToken" intended to offer societal benefits, it never launched, specifically because it aimed to create value. Most existing cryptocurrencies are designed purely for speculative trading, enriching a few while leaving many feeling hopeful about quick riches. The so-called "crypto revolution" has proven to be a disappointment, as the greed and deceit surrounding it have begun to unravel. Major exchanges are collapsing—first FTX with its $10 billion misappropriation, and now Binance.
Section 1.1: The Fall of Binance
Binance, a titan in the crypto realm where everyone sought to list their tokens, has faced a staggering setback. The company recently pleaded guilty to multiple financial offenses, agreeing to pay around $4.3 billion as reported by the Justice Department. They admitted to failing to maintain a proper anti-money laundering framework and to not registering as a money-transmitting entity. The founder, Changpeng Zhao, known as "CZ," has stepped down as CEO.
The first video titled "The Booming Crypto Use Case That's Happening Right Now | Odd Lots" offers insights into the ongoing transformations within the crypto landscape, emphasizing potential practical applications that could emerge.
Section 1.2: A Call for Accountability
The collapse of these exchanges brings me relief. I hope that many of those who have misused investor funds for indulgent lifestyles—such as taking private jets for trivial errands—face justice. The blockchain technology that underpins cryptocurrencies has the potential to create real change, if only people would focus on meaningful applications.
Instead, many projects promise revolutionary changes in all aspects of life while enticing investors to buy into their coins. Although there are now regulations in place governing fundraising in this space, it's not difficult to find loopholes. The atmosphere at these events often resembles a frat party, with teams vying to outshine one another with unique promotional items, fostering a culture of quick profits and reckless speculation.
Chapter 2: The Road to Redemption
During my conversation with Justin Sun, it became clear that the majority of these projects are not aimed at using blockchain technology to address societal issues like income inequality. My CityToken initiative was developed for that very purpose. While I had made progress toward launching it in Roanoke, Virginia, the project fell off the radar when my collaborator lost his election.
When discussing my project with a prominent investor in Palo Alto, he noted, "This is the first blockchain project that could actually help people." However, he quickly added, "But how will I make money from it?" This sentiment reflects a broader issue: the need for financial returns often overshadows the potential for positive societal impact.
As I reminisced about the extravagant whiskey bill at Justin's event, I couldn't help but think of the wasted funds. If the money spent on lavish drinks had been redirected, I could have launched my CityToken initiative as a proof of concept in Roanoke.
Ultimately, I have abandoned my dream of changing the world through CityToken. Now, my focus is on holding accountable those who have betrayed the trust of others and squandered the promise of blockchain technology.
The second video titled "BITCOIN: SHOCKING TURN OF THE MARKET!!!!!!! (plebs will miss this)" dives into the unforeseen shifts within the cryptocurrency market, shedding light on trends that could affect everyday investors.