Leverage Traders get “Rekt”

You didn’t think being this early on revolutionary technology was going to be easy, did you? $1.16 billion liquidated in the past 24 hours. HODL isn’t just a phrase anymore, it has become a lifestyle. Being levered in any direction in this market will not end well. The amount of leverage in crypto asset trading is coming to a point of danger for the entire market. The quicker that retail learns to buy and hold crypto assets with real utility, the less pain they will feel on days like yesterday and today when their assets depreciated in value by 20%-40% if not more in some cases.

Market Influences

China has banned cryptocurrency for the second time this year. They also have been doing this annually since 2014. Here. This was reiterated again with the purpose of instilling fear in retail about crypto assets. Now you may ask “what about mining? They banned mining this time too.” This benefits Bitcoin in making it more decentralized as China has a majority of the mining power in the World for Bitcoin. This is not so much the case for Ethereum, where miners are more distributed and popularly seen throughout the US and Europe. However, the mining ban in China may hurt Bitcoin in the short term as the hash rate may drop, but overall it is better for the future of Bitcoin as well as crypto assets in general.

A Brighter Outlook

Let’s turn to the positives of these past two months. Institutional money continues to flow into crypto assets. So keep in mind when you are selling a good project with a use case you’re probably selling to someone far more wealthy than you are, unfortunately. Hedge Funds want to have 7% of their assets in crypto by 2026. Here. While there may be a lot of ups and downs in the meantime, it is hard to ignore trillions of dollars flowing into this emerging asset class. Just today, as the market is in peril and everyone on Crypto Twitter is turning into a bear, this happens. $300M into venture crypto projects. The two payment giants of today investing almost half a billion into crypto venture projects. Not even the assets that are out now! If you are reading this, congrats you are early to a revolutionary tech that is going to change how the world operates on a daily basis.

HAI DAMO aims to bring decentralized investment vehicles to the crypto asset class by offering investors a transparent and viable ecosystem of on-chain ETFs. Thanks for reading. Our governance token medium will be here shortly to fill you all in on the future of asset management!


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Hedge Against Inflation (HAI) is the first DAO-operated Asset Management Organization (DAMO)