Why your business is at serious risk if you have anything to do with altcoins, tokens, and “crypto” rather than Bitcoin. 2022 post-FTX edition. A thread. 🧵👇

Prior to this year, you may have had plausible deniability. That is now gone. You’ve seen examples that seemingly successful large companies were built on a house of cards. Underpinning it all is the mistaken idea that tokens have any inherent worth. jimmysong.medium.com/on-altcoin-valuation-bf19a30ee0df

SBF explained how tokens are created with 20 minutes of work and how capital is attracted to such “boxes” through a combination of marketing and liquidity snowballing, often with liquidity provided by market makers and VCs in on the deal.

Meanwhile the SEC started making examples of completely irrelevant projects like LBRY, with strong hints of setting precedents calling all tokens securities. What happens to exchanges that list them? decrypt.co/109881/gensler-proof-of-stake-ethereum-securities

Ethereans locked up their funds in a common enterprise run by Vitalik and others with the expectations of profit upon Vitalik’s delivery of a roadmap thar may be the most complex Rube Goldberg scam ever.

Eth may have gotten a pass on their initial unregistered security fraud but eth 2.0 has started a new timer and the howey test very clearly applies.

The Ripple case may be the nail in the coffin. If a multi billion dollar project is regulated as a security, we will have dumps of all security tokens as exchanges delist them.

Do you understand the risk of hacks, rugpulls, and outright scams affecting the tokens your business interacts with? www.comparitech.com/crypto/cryptocurrency-scams/

Do you get that the wash traded NFTs you’re bidding on are being used for money laundering? Maybe you’re ok holding jpg’s of apes and praying as an individual. Are you willing to hold that risk as a business? www.coindesk.com/learn/what-is-nft-wash-trading/

How hungry for yield are you that you will stake assets on exchanges with the real risk of never getting them out?

These are the hard questions businesses and individuals in the “crypto” space will ask themselves. Once they figure it out, we are happy to welcome the new bitcoin maximalist class of 2022. You are not alone. Many of us were you, 3-6 years ago. Let’s focus on what matters. 👋🤝💪

If you took advertising from non-bitcoin only companies. You are also at risk. See also: this clip from the bankless guys where they have to contractually keep running nexo ads even tho they might be insolvent. @PeterMcCormack you should speak about this.