The current market situation, my response
A lot is going on in the crypto market and it is easy to fall in the trap of becoming fearful and make a bad decision but also similarly be to complacent and risk losing a lot of your portfolio value.
I cannot count the amount of DM’s I get from both community members as also fellow Crypto founders asking for guidance and my brutally honest input.
When your around in Crypto long enough you will see history repeat itself quite often. For example: an Algorithmic backed Stable coin is and has always been a very bad idea.
Here is a fellow crypto professional from a project roughly 10 times bigger then AOG on march 29th 2022.
How was I able to know that he shouldn’t put a lot of money into UST? Because I had seen the fall of “Titan” and people I know lost their money. I even warned about this 11 months ago in my stable coin video: https://youtu.be/nlHmyEvhg1o
Point that im making here is: a bad idea from the past will be still a bad idea in the future. Therefore I recommend you now to stay away from USDD (by the Tron guy). Its just a recipe for disaster.
Ok so that brings us to today and the situation with Celsius. Centralized platforms have a history of doing dumb things with other people’s money because they are not regulated (some think there will no consequences). For example, some lending platforms are taking a loan on their investors collateral or using it in other ways to make yield. One good example of that is “stETH” from the Lido platform that should be pegged against ETH (but recently did lose its PEG and so isn’t, can you see a pattern develop here?). Celsius is reportly having a lot of stETH to get that 4% gain from it for either themselves or to use it for paying their audience who thinks that they get yield from simple lending services.
Basic concept that some of these lending platforms use is:
- promise a nice “safe yield”
- People deposit crypto
- Lending platform uses the crypto in a risky way to get bigger yield (so not just their lending service)
- Pays out yield and keeps the surplus as profit with no token buyback ofcourse (cuz projects want to make profit for themselves and don’t actually care about their holders.
Who is at risk when it all doesn’t work out? Yea you’ve most likely guessed it, the people who deposited their crypto and not the project. If you would actually read the terms of service of Celsius (which ofcourse nobody does)
Now the big question becomes what will happen to Celsius. Well, freezing the withdrawels is obviously a harsh measure and could possibly lead to a bankrun. What is needed from them is a fast response, action taken to get out of the situation and honesty. (so far no response from their CEO today at all, just radio silence).
I personally do not trust the CEO of Celsius, he is similar to Don Kwon (a scumbag). This was 1 day prior to him closing down the withdrawels.
No Alex, you are not “winning” you are a the reason why the whole crypto market is in losses now and people do not trust Crypto companies (and why should they with people like you making the calls). Plus the only thing your giving your community is a lot of stress at this moment.
Celsius may survive, it would be good for the short term Crypto market, but long term it be actually better if guys like this and Don Kwon to be going bankrupt and shamed forever, their legacy ruined, I can’t imagine how these guys can look themselves in the mirror anymore.
So what about AgeOfGods and how do we manage our treasury from the company? Well let me give you clarity and transparency. Typically not something Crypto projects do.
- AOG has it’s treasury 100% in BUSD and USDC, staked as LP on Pancakeswap. Why? Because Pancakeswap liquidity providing on 2 (proper) stable coins is risk free and because its a double audited proven smart contract, it is safe and decentralized. We make a yield from trading fees that will simply be added to the treasury to be used for AOG. As it waits to be used for marketing investment for example. Why BUSD and USDC? Because they are one of the few Stable coins that are actually backed by real dollars and have monthly attestations to prove it. Unlike stable coins like USDT for example that are not backed 100% by dollars but rather assets (asset value’s can fluctuate and therefore are risky).
- We do not use our company teasury for getting a loan or any other form of collaterol.
- Our staking contract is designed in a way that a “bank run” on AOG, would only result in the APR % going up as people unstake. So first of all, you are garuanteed to get your AOG back anytime you want 24/7 fully decentralized and safe. Second if a lot of people do this for whatever reason, it is no issue whatsoever as the tokens are 100% there in the pool and those that choose to not unstake, will simply get more APR. A fair system, that gives freedom and incentive for encouraging the right behaviour. We cannot (and would not even if we could) freeze anyone’s AOG in any circumstance.
Yes the market is down a lot, yes the world economy is looking bearish, yes you may have had a lot of “losses” on paper. If you have made token purchases in projects that are good and have trustworthy leadership behind it. The market will recover eventually and when it does, the projects that surived will reap the benefits and grow again. Bearish markets shake out the weaklings, the bad projects, the meme tokens, the useless stuff in crypto. Over a longer period of time this is actually a good thing.
So please review your portfolio if you haven’t already and make the best possible informed decision you can by studying the projects around 10+ hours you have invested in and make a decision according to your findings.
As always if there are any questions about AgeOfGods, feel free to ask them, we answer questions 24/7 in our official telegram channel.