jupitΞr @jupiternifty - Twitter Profile

jupiternifty retweeted

Alan Carroll

@alancarroII

almost 3 years ago

2021 degens returning to crypto twitter in 2023

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jupiternifty retweeted

Beanie

@beaniemaxi

about 3 years ago

Retail always loses. This is why👇 Coinbase insiders dumped hundreds of millions of dollars worth of $COIN. Much of this near the top, over $250 per share. The co-founder of Coinbase, who is also founder of Paradigm, was a big part of that selling. He also bought the recent sell off, near the all time low. Smart trade, right? I’m not throwing shade on him. This is how it’s always done. I mention him only because of the obvious relationship to Coinbase. Now out of the blue about 5 days ago, Coinbase announced to much fanfare that “the first viral social dapp on Base” just launched. This drove a massive amount of traffic to its new Base protocol. Well of course it did. It’s an influencer pumped ponzi. They take off fast and they’re exponentially sticky. But why Friendtech? 2 days later we found out, as Paradigm announced its involvement as backers of the app. Activity exploded as that seemed to suggest that the platform is legit. Not a phishing scheme as many suspected early on. So what’s the problem? Friendtech has launched under the guise of being a token gated private chat for influencers. The platform is incredibly buggy. But that didn’t matter. The idea is intriguing, howeber the mechanics are set up to destroy retail. So far we’ve seen influencers profit tremendously by buying their own shares (which are tokens) and burning them into the bonding curve. This manipulation of individual share prices has already made large sums of money for influencers. Some are over six figures in a few days of doing essentially nothing. The Friendtech platform itself is raking in millions of dollars, as it takes a 10% fee (same as the influencer) on every transaction on the steep bonding curve. Share prices scale fast. We’ve seen this before and it never ends well. Coinbase got a ton of network activity, which ultimately it will use as proof of concept when selling stock to retail investors that probably are not aware it’s just a ponzi. Paradigm, which is connected to Coinbase through its founder and others, is raking in the cash now likely in the millions of dollars through platform fees. Influencers are dreaming up wild and creative ways to manipulate their share prices on the platform. Some will certainly make hundreds of thousands or even millions of dollars off this. Retail will undoubtedly get rekt in this high stakes game of musical chairs. It’s inevitable that retail will be left holding the bag as the shares on the bonding curve fall in price just as fast as they rise once the hype is gone and the music stops. Coinbase will likely rope in new retail investors excited to own a piece of Base, not realizing that the utility is tied to an unsustainable ponzi. The money can’t magically appear out of nowhere, so there has to be a loser here. Some retail traders of Friendtech shares have done well. You can make money in a ponzi if you’re early. Look at Terra or even Madoff. Some massive early retail winners that got out on time. But it’s a stacked deck. In this case retail is even further disadvantaged because they’re getting front run by bots. And the shameless sellers of these bots are front running their own bot buying customers. The rabbit hole runs deep. Everybody wins, and retail loses. Again, this isn’t a criticism of Coinbase, its insiders or Paradigm, or its partners. This is how things are done and there’s nothing new here to see. But it’s a heads up to retail. Excercise extreme caution here. This time is not different. It will not end well, and just know that you’re the exit liquidity.