6 ms·

It is fascinating just how quickly sentiments can change (both in the broader market but in crypto it seems to be exacerbated). That said, it's obvious that com

It is fascinating just how quickly sentiments can change (both in the broader market but in crypto it seems to be exacerbated). That said, it's obvious that companies like these dramatically overhired and overspent on talent and were growing far beyond what the market could bear except in an extremely bull run subsidized by government largesse. Now that investors are losing their shirts on crypto and retail people who were playing with fun money have sports to bet on again and can go outside, I imagine the trading volume is going to keep declining dramatically, and they basically missed the NFT craze since their marketplace was late to the party. Hope their employees who have been with them for a while were able to sell at a reasonable time after IPO and aren't still in the lockup period.

melling 4y ago
“It is fascinating just how quickly sentiments can change” Sounds like a classic bubble that people have been warning about. Tulips all over again? https://www.cnbc.com/amp/2022/05/02/warren-buffett-wouldnt-spend-25-on-all-of-the-bitcoin-in-the-world.html https://www.cnbc.com/amp/2022/05/02/warren-buffett-wouldnt-s...
- deleted 4y ago
  [deleted]
- ChrisRR 4y ago
  Beanie Babies all over again
  - scoopertrooper 4y ago
    Worse, at least the Beanie Bros had warehouses full of stuffed toys to remind them of their mistakes in the end. All the cryptoists get is a lousy set of characters for their trouble.
    - omnibrain 4y ago
      And you still could use them for their original purpose: as a toy. A few months ago I read a post on Reddit who someone who is now a teacher uses them as a occasionally gift for pupils: https://www.reddit.com/r/mildlyinteresting/comments/s5rz7s/comment/ht09pof/?utm_source=share&utm_medium=web2x&context=3 https://www.reddit.com/r/mildlyinteresting/comments/s5rz7s/c...
- highwaylights 4y ago
  They’ll be fine. There’s another sucker born every minute (although, you know, declining birth rates). No-one learned their lesson after 2018, so they aren’t about to start now. People like easy money. If you tell them the truth, they’ll just accuse you of trying to trick them into staying poor. It’s a can’t lose business model! Sarcasm aside, the total return of Bitcoin since the peak in 2017 is now approaching 0% ($20k peak). I suspect that alone will do more to break the spirit of the twitter hype mafia than anything else. Even after everything that has happened lately, regular old S&P 500 index funds are up about 65% in that same time.
  - nicbou 4y ago
    The problem is that people have started to invest other people's money in crypto. Quebec, El Salvador, and probably a few private funds now hold crypto and crypto-related assets. Then there are people who simply don't know better and were conned into throwing money at crypto.
puranjay 4y ago
Case in point: OpenSea's monthly volume: https://dune.com/rchen8/opensea https://dune.com/rchen8/opensea There's no hiding on the blockchain. Monthly volume has gone down from a peak of nearly $5B in January to $372M in June so far.
- go_elmo 4y ago
  oooof.
- santiagobasulto 4y ago
  I see the point and I agree with you. But let me point out 2 things for the sake of being scientifically correct: * we're just at the middle of the month * the price has dropped 4x, those charts are in USD So comparing June (14 days) to Dec is not entirely fair. Your point still stands.
  - puranjay 4y ago
    That's the problem - your expenses (salaries, rent, hosting, etc.) are paid in USD. Meanwhile, your revenue is in ETH. Even if you can maintain the same volume, your revenue can drop drastically if ETH price drops. A 100 ETH sale earns you 2.5 ETH. In January, this was worth $7.5k. Now, its worth $3k. Your revenue dropped by over 50% but your expenses are going to stay the same. I can't see how the economics of businesses like this can work out.
    - santiagobasulto 4y ago
      > your expenses (salaries, rent, hosting, etc.) are paid in USD. nobody (sane at least) would mix expenses and long term, high volatility investment as crypto. I own some crypto and I don't care today's price, it's a 10y investment.
      - puranjay 4y ago
        Except in this case, its unavoidable - unless your employees and landlords and hosting companies accept crypto. Your revenue will always be in ETH (or other native tokens). Your expenses will always be in USD (or local currency). Which is what makes this model unsustainable.

melling 4y ago

“It is fascinating just how quickly sentiments can change” Sounds like a classic bubble that people have been warning about. Tulips all over again? https://www.cnbc.com/amp/2022/05/02/warren-buffett-wouldnt-spend-25-on-all-of-the-bitcoin-in-the-world.html https://www.cnbc.com/amp/2022/05/02/warren-buffett-wouldnt-s...

deleted 4y ago
[deleted]
ChrisRR 4y ago
Beanie Babies all over again
- scoopertrooper 4y ago
  Worse, at least the Beanie Bros had warehouses full of stuffed toys to remind them of their mistakes in the end. All the cryptoists get is a lousy set of characters for their trouble.
  - omnibrain 4y ago
    And you still could use them for their original purpose: as a toy. A few months ago I read a post on Reddit who someone who is now a teacher uses them as a occasionally gift for pupils: https://www.reddit.com/r/mildlyinteresting/comments/s5rz7s/comment/ht09pof/?utm_source=share&utm_medium=web2x&context=3 https://www.reddit.com/r/mildlyinteresting/comments/s5rz7s/c...
highwaylights 4y ago
They’ll be fine. There’s another sucker born every minute (although, you know, declining birth rates). No-one learned their lesson after 2018, so they aren’t about to start now. People like easy money. If you tell them the truth, they’ll just accuse you of trying to trick them into staying poor. It’s a can’t lose business model! Sarcasm aside, the total return of Bitcoin since the peak in 2017 is now approaching 0% ($20k peak). I suspect that alone will do more to break the spirit of the twitter hype mafia than anything else. Even after everything that has happened lately, regular old S&P 500 index funds are up about 65% in that same time.
- nicbou 4y ago
  The problem is that people have started to invest other people's money in crypto. Quebec, El Salvador, and probably a few private funds now hold crypto and crypto-related assets. Then there are people who simply don't know better and were conned into throwing money at crypto.

puranjay 4y ago

Case in point: OpenSea's monthly volume: https://dune.com/rchen8/opensea https://dune.com/rchen8/opensea There's no hiding on the blockchain. Monthly volume has gone down from a peak of nearly $5B in January to $372M in June so far.

go_elmo 4y ago
oooof.
santiagobasulto 4y ago
I see the point and I agree with you. But let me point out 2 things for the sake of being scientifically correct: * we're just at the middle of the month * the price has dropped 4x, those charts are in USD So comparing June (14 days) to Dec is not entirely fair. Your point still stands.
- puranjay 4y ago
  That's the problem - your expenses (salaries, rent, hosting, etc.) are paid in USD. Meanwhile, your revenue is in ETH. Even if you can maintain the same volume, your revenue can drop drastically if ETH price drops. A 100 ETH sale earns you 2.5 ETH. In January, this was worth $7.5k. Now, its worth $3k. Your revenue dropped by over 50% but your expenses are going to stay the same. I can't see how the economics of businesses like this can work out.
  - santiagobasulto 4y ago
    > your expenses (salaries, rent, hosting, etc.) are paid in USD. nobody (sane at least) would mix expenses and long term, high volatility investment as crypto. I own some crypto and I don't care today's price, it's a 10y investment.
    - puranjay 4y ago
      Except in this case, its unavoidable - unless your employees and landlords and hosting companies accept crypto. Your revenue will always be in ETH (or other native tokens). Your expenses will always be in USD (or local currency). Which is what makes this model unsustainable.