This is another antagonistic article that will annoy a lot of people, so enjoy…
The Crypto Dips
There are many YouTube influencers in the crypto world, and dependent on who you watch, you will either believe crypto is going to go up, going to go down, or just going to be a HODL for life. There is no consensus around crypto, not even among the community itself. Unlike the forex and stocks community where basic rules and regulations with a touch of conspiracy theorists to pepper up the news, crypto is chaos. There is no connectivity between anything. Bottom line is this: you wanted decentralized, you didn't really get it, what you got is manipulated and centralized.
Let’s take a closer look.
Let’s start of with:
Crypto Market Cap
When you look at the top 100 in Coinmarketcap and Coingecko, what do you see?
You see tokens worth over $1 billion in value and memes and pumps to push them up to 10, 50, 100 billion values.
When you look at foreign currencies and stocks and bonds what do you see?
You see assets linked to a financial baseline, you see profitability and cash flows projecting market values. Yes, when markets drop everyone drops, but that’s just herd instinct. In general, a companies stocks and a countries currency is directly linked and related to its actions, profitability and potential.
What is cryptocurrency linked to?
Only potential, and not even a realistic one.
What is potential?
It is the projected income and profitability of a companies performance over a future time range, usually around 4 years. You take into account R&D, sales figures (receivables), marketing expenses, production costs and legals as well as competitors new and old and you bunch ’em all together to make a projection. For companies with products and services this gives value. It is a performance based value with a touch of potential. The higher risk the industry the higher the potential ratio, such as the difference between construction and software development, or insurance and pharmaceuticals.
What is Crypto potential?
It depends on the type of company. There are three types of crypto projects around:
Exchanges: whose income is from listing and trading fee’s, which is directly related to the crypto value on the market. The income is linked to size of community, the bigger the community using the exchange the more “real” money it will make. Take into account that 90% of all exchanges are scams, where 95% of all trades taking place are made by MM bots (market making) and do not represent real money or real people, instead they are bots used to pump up the exchanges trade turnover. Even wallets are no longer proof of reality, as wallets are created to facilitate MM bots. In other words, around 60% of all active wallets are actually fake.
The potential of exchanges is high because in general they provide a service paid by a fee, and the more active the site, the higher the income. As such, exchanges are at the top of the food chain when it comes to potentialized income where the top money churners are platforms that charge >$250k per listing for work that takes around 1 hour to set up.
Blockchains: these are the potential foundations for other projects that seek out secure, fast and cheap blockchains to grow their services. The potential income for these is based on their success in providing a stable decentralized and low fee service. A blockchain is like an ISP, where the customer wants fast, secure, stable and as free as possible.
The potential for blockchains is that they are considered capable of “monopolizing” projects. In reality this is a fallacy as chains are like any large customer based infrastructure provider, they compete with others and must constantly update their technology base and marketing to stay relevant.
Projects: we decided to bunch everything that is not an exchange or a blockchain under projects. Projects are where the “potential” is being abused. There are thousands of projects that make no income, have no clients, are all “dreams” and in some instances “scams”. Their potential to earn income is limited, and in many cases their understanding of market dynamics is zero. Anyone with a bit of computing skill can set up a project, it doesn't mean the project is worth anything, and yet, we can see hundreds of projects with values above $1 billion in market cap.
The potential for projects has to be defined by the same potential any other company on a stock exchange or privately held is accounted. Income, expenditure, cash flow, profit, R&D, customer base etc…all the painful components that make up a business.
We will start to see more dips than pumps, the reason being that the crypto world is not as decentralized as people think. For instance, Solana is not decentralized, neither is Polkadot. In terms of working projects, Cardano is one project that is not working. What do we see with these three top players with over $20 billion, $30 billion and $50 billion values? We see chains devoid of any income and whatever potential income is not anywhere near a billion, not even a million. Their entire value is based on market perception and what people are willing to pay for it, and now people are starting to realise that there is only so much you can pump a value up to, when there is nothing to support even 0.0001 of the value based on actual and real as well as potential income values over the next 10 years (not 4).
Where is Fuzzy.One in all of this?
Fuzzy.One is trying to level the playing field for everyone, not just for the crypto community but for the global community. 95% of all crypto projects are for the crypto savvy, and all exchanges are for crypto enthusiast. Chains are essentially global.
What does this mean to us?
It means that we don't need to conform to what is currently considered “norm”, we can evolve to best utilise all to the benefit of our community.
How do we do this?
Exchanges: We don’t need to play the exchange game, we can set up our own internal exchange since our community is large enough to provide a trading platform. We wont use mm bots, we wont have fake wallets, and we will be 100% transparent and genuine. We will list on two or three exchanges to kick off our tokens value for initial value, but we will build in an internal swap engine that will potentially replace the need to outsource to unstable environments, and all exchanges are potentially unstable environments only because they are not regulated and there are questions about their ownership and ethical practices.
Blockchain: We don’t limit ourselves to one chain, we can use as many chains as we want to deliver specific outcomes based on the chains core competencies. After all we use Excel, Word, Powerpoint, we use Instagram, Facebook, Linkedin…we don’t limit ourselves to any one provider of service as we seek multiple services that offer different solution. So we are not fixating on any one chain to deliver our services, instead we use the chain for the tokenomics where our platform is web and web 3.0 based.
Project: We are the project, our project is a community based one where the size of the community determines the success and value of the project. The larger the community the more income to share with the community and the higher the value of the token. You can read all about the project and the tokenomics in our Medium Page.