A big piece of news in the past couple of days, not sure if everyone has heard about it,
This news comes from SOLV, which just launched on Binance. SOLV is a project for staking BTC, and the project team found a BTC whale, a wealthy individual holding 1800 BTC, to contribute to the TVL. It's worth noting that this so-called "contribution" only requires authorizing certain permissions; the BTC is still held by this wealthy individual.
What does this mean? For example, if we participate in SOLV with BTC, if a hacker attacks or the project team pulls a rug, our BTC would be lost, but this wealthy individual’s 1800 BTC would face no risk. I am not clear on the specific technical principles, but it seems the project team colluded with the whales to create false TVL, thereby attracting retail investors to stake real money. Then, because the tokens provided by the project team were fewer than promised, this wealthy individual publicly asserted their rights, which is how the truth of the matter came to light.
Let’s not get too caught up in who is right or wrong; it’s not good for retail investors either way. The project team is creating false TVL, and the whales are using large amounts of principal to gain leverage, ultimately dumping everything onto retail investors. So, I’ve always emphasized that new coins launched by large exchanges shouldn’t be chased easily; it’s easy to become a liquidity exit contributor for others. Including BIO, which launched in the past couple of days, the returns for first and second rounds were 20 times. You might wonder if it’s worth buying now; is the risk-reward ratio reasonable? I’d rather not earn that money than take on someone else’s 20 times position, right?
Indeed, as everyone has mentioned, the secondary market is becoming increasingly difficult to navigate. If it’s not fun, we can choose not to participate. I think it’s still best to select some newer coins or older coins, focusing on projects that have gone through deep market washes.
As for the market, there has been a decent rebound in the past couple of days, and the exchange rate of Ethereum has also risen somewhat, but overall, Bitcoin remains below 100,000. Continue to make some short-term trades. In January, some positive news is expected, such as FTX beginning to pay back, Trump taking office, etc., which could help restore market confidence. However, regardless of how the market oscillates next, 2025 is worth looking forward to. Right now, it’s a good time to buy on dips and make some short-term trades.
