How bad is the FTX fallout going to be? This is hard to predict. Some are coming out and calling it an Enron moment.
Whatever the end result, there is no doubt waves of carnage will travel through the cryptocurrency industry. It is a setback considering the path we are taking. However, in the long run, this is likely just another part of the clearing out process.
Here is a graphic that was being passed around Twitter. It highlights all the companies that presumably have exposure to recent events.
As we can see, there is a lot at risk. The incestuous nature of the entire industry is being exposed. It is going to take a while for all of this to unravel.
The Anti-Thesis Is Hive
Throughout all of this, Hive just keeps trudging along. Each day on the blockchain is similar to the one before. Certainly, the topics of conversation can change but we see the regular progress being made. FTX is not changing that at all.
Many often espouse how Hive as no Venture Capital funding. We are the overlooked engine in this machine, often to the point where we feel targeted. Whatever the reason, Hive still epitomizes what the industry is all about.
Sometimes there are no shortcuts. When people focus solely upon market price, they are looking at insanity. The most recent spectacle is evidence of this. Unfortunately, the market bought into the hype and pushed valuations that were absurd.
Now the unwinding is happening and it will be felt by all. Nobody is going to come out of this unharmed, at least in the near term. Eventually, the industry will regroup and be strengthened. That is, however, going to take a while.
In the meantime, builders will keep building. This is a technology industry at its core. It has nothing to do with market price. While that factors in with funding and other mechanisms, the reality is we are building. Valuing a business in its infancy is insane. What is even crazier is believing that valuation. There is truly no basis to go on.
Since most only care about price and their holdings mooning, this makes the entire industry susceptible to situations like this. Greed is powerful meaning that many want to take shortcuts. Bankman-Fried is an obvious fraud. Nevertheless, for a while, he lived the life of a rockstar.
Why is Hive overlooked? This is something regularly asked. At this point in time, it is a benefit. Hive appears to have no exposure to FRX or the fallout that is coming. Other than the price of the coin getting obliterated, we keeps pushing forward.
Slow And Steady
Hive is not sexy. To the contrary, it is boring and slow. Each day people show up consistently putting forth action that helps to move things. We simply inch along while maintaining the tenets of decentralization, open source, distribution, and freedom.
Others prefer to hop on the expressway, get in the left lane, and floor it.
This makes many envious. We have years of discussions on record about what needs to be done to market Hive. All of this is being exposed as premature. The cart before the horse really comes to mind.
Resiliency is vital. This year is providing a number of lessons as to what happens when an ecosystem lacks that. There are only two outcomes: collapse or being taken over.
Neither is what we want for Hive.
A lot of work went into developing a base layer that is decentralized and resilient to attack. We have safeguards in place to protect against a hostile takeover. This is something that many blockchains lack.
At the same time, we see work being done on a decentralized layer 2 node system. This is equally as important when discussing concepts such as freedom of speech. There is another factor and that is freedom of money.
Owning one's account is vital. The important appears with some of what took place in social media the last few years. However, it is starting to take on more meaning as finance is integrated into it.
Being able to secure one's wallet without fear of having it shut down is crucial. Here is one of the most overlooked characteristics of Hive. If we are going to truly have decentralized finance, we will not get their via VC backed entities built on centralized infrastructure that can be controlled by a few large entities.
The drawback to this is the fact that development is slow. Again, we are back to the slow and steady. That is Hive.
History is littered with stories about entities that were glamorous. Sadly, cryptocurrency seems to be starting its own list.
Hive Marches On
The key to all this is not to fear. Hive was designed to be resilient. Much of the last 2.5 years was spent with that in mind. We are ahead of everyone else because we had our Enron moment at the beginning of 2020. This gave Hive a head start.
Billions of dollars is being lost in VC funding. The gap on the playing field is closing a bit. Much of the duplication that was occurring is simply going to disappear. Look at the list above. Many of those features and services will end up being offered on Hive.
In fact, some of it is already being developed.
Those who were focusing upon Hive find themselves in a situation where they are most insulated from what is taking place with FTX. Many were drawn to the flashy nature of other projects. Those tokens are likely heading to zero.
On Hive, value is based upon building. There is a lot on here that will end up worthless. The difference is we can witness where the builders are. Here is a major advantage.
We have months of carnage ahead of us. The regulators are now drooling because they have the excuse they need to start clamping down. Everyone is going to feel that pinch.
In the end, on Hive, it isn't going to matter. Those that are constructed in a manner that circumvents the tyranny of governments and major corporations are going to excel. When dealing with fiat, it is ultimately going to be full KYC. However, through the use of DEX, liquidity pools, and other truly decentralized features, Hive simply will allow the crypto experience to continue unabated.
The only challenge is that we have to build it all ourselves.
But then, isn't that what decentralization is all about?
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