Centralized crypto projects (exchanges, payment processors, wallets, etc) declaring bankruptcies or suddenly coming up with fund restriction announcements should not be a regular thing in the crypto space. But 2022 has taught us that a lot has changed. We now wake each day to news of one winding up or another. We read these sudden withholding of someone else's hard-earned investment and it seems like a normal thing. I just wish users will listen and learn - or at least ask questions before risking their money.
I came across this discouraging Twitter announcement by yet another centralized crypto payment processor - Wyre. The tweet made on 7th of January 2023, informed users of this service that they can no longer withdraw all their money in the wallet. Going forward, they can only withdraw at most 90% of what they have. If you want to see the annoucement Tweet, click here.
Wyre facilitates crypto payments. One of their service is helping clients receive crypto payments and have the fiat equivalent. Now imagine a big business or even some smaller users waking up to see that for now, they no longer own 10% of funds in their wallet. 10% might look like a small number, but when you have thousands or even millions of users, their cumulative 10% is certainly no small number. So the point is this:
Should you trust any centralized crypto projects with your hard-earned funds?
The FTX saga, plus an endless list of collapsed or collapsing centralized crypto projects should be sufficient evidence to re-think your strategies. While centralized projects are not going off soonest, you better check what you are dealing with. The advice to invest what you can afford to loose cannot come at a more relevant time than now.
Centralized crypto projects are like a one-man business. Your boss can wake up on the wrong side of the bed and decide to fire you. These crypto CEO's are waking up each day and putting out a one line Tweet to seal your fate. Just as Wyre customers are waking up to see this Tweet, they can do nothing about it. Just a few clicks and the admin will lock up the 10% whether customers like it or not. After all, there is likely somewhere in the Terms document (we usually dont read it) where they will say or imply that your money is no longer yours once you deposit it with them.
I keep on saying that sometimes, these acts are carefully orchestrated right from day one. These guys even anticipate litigations which is why they are usually prepared from the onset. Users are only prepared to loose money or other valuable assets. I said that centralized crypto projects are still powerful today no matter what happens - and we the users give them this power (for instance, Binance is still the top crypto exchange). But then, we have already seen enough to still fall victim to what has already happened to others.
You need not be another statistic in 2023..
and that will mean you never learnt your lessons. The pattern we have seen at least more prominently since 2022 is:
- they will either lock up some of your crypto assets against your will OR
- they will file for bankruptcy
either ways, you will be at loss. If you are looking to our legal systems to help you recover funds in case of a FTX-style collapse, well you might be in for further heartbreak. Yes the judicial procedures and final outcome is usually such that the thief face little time behind bars (if at all) and that is it. They will not recover your funds. They rarely do. So in order not to be another victim shedding tears in 2023, be careful when putting your hard-earned money into any centralized crypto project. Or..
..Why dont you look at great web3 alternatives like Leo Finance
The way we talk about LEO might make it look like it is a perfect project. Its not. But Leo Finance is a decentralized alternative to the centrally controlled crypto projects that have made people cry. When you invest in Leo (this is not advice), you stay in control of your investment. Its your money because no one has the keys except you.
Whether you are staking in the new Cub kingdoms, or you wish to invest in the native LEO token, you are in control. Currently, Leo is powering a rewarding micro-blogging crypto project called Threads. This is where you are rewarded to do what you do on Twitter. We call it crypto twitter and it is the next big thing in the Leoverse. Of course there is more to explore and be part of in LEO Finance. Here is where you put money, sleep, wake up and nothing happens. Decentralized or web3 crypto projects is the future and the future is right here with us. Make up your mind and join the moving train that puts you in the driver's seat.
Finally...
Its not worth it to keep on risking and loosing more! We have heard enough cries. The bear market alone is enough bad news. No need to have more. The FTX saga and many other collapsed crypto projects are warning examples of the risk inherent in any business controlled by one person.
Invest where you will have peace of mind - and that is in decentralized crypto projects. Of course you know this is not professional advice. Its best you advice yourself after having done research properly. But then, web3 is the future and Leo finance remains the pioneer project in this space.