Home DeFi & NFT Decentralized Finance – not so much! Ego war among crypto titans

Decentralized Finance – not so much! Ego war among crypto titans

Decentralized Finance Crypto Titans

Thanks to the prominent support of Elon Musk, Dogecoin was able to multiply in value within a few days – with absolute uselessness at the same time.

Driven by this hype of a completely pointless meme coin, several more dog meme tokens have started on the Ethereum blockchain in the last few weeks. The developers of the coin speculated that investors had missed the Dogecoin Boom and would now buy their new dog tokens. It worked out. Countless dog projects (Dogelon, Aktika Inu, Shiba Inu, …) emerged within a few days, which, driven by the hype, increased in value.

The “Shiba Inu” project was particularly successful in this regard, which managed to gain massively in value within a few days and turned some early investors into millionaires overnight. Since the hype about Shiba Inu became big enough to even land within the Top 30 crypto projects, “Shiba Inu” was honored with a Binance listing only yesterday.

This listing caused criticism from a large number of experienced investors, as the hype is probably not sustainable and many new investors could buy into the pump through this listing – and lose their money. The founder of Binance, therefore, justified himself on Twitter yesterday.

Even before CZ justified himself on Twitter, Binance’s official listing statement indicated that there is a person who owns more than 50% of all Shiba Inu tokens. This person is none other than Vitalik Buterin – the inventor of Ethereum. But not only Shiba Inu, Vitalik also owns Dogelon and other dog tokens in large quantities. The added value of his dog tokens (> € 7 billion) even exceeded the added value of his Ethereum tokens.

Vitalik himself has nothing to do with the tokens. Before the tokens gained in value, the developers sent 50% of all tokens to Vitalik Buterin for marketing purposes / tribute – on the assumption that he would mention the tokens and thereby increase the price or never sell them anyway. 

The calculation was wrong. 

Normally, Vitalik would’ve just ignored these and let them sit but he decided to sell large amounts of his dog tokens for Ether and donate these Ether to projects that he finds worth supporting ( e.g. Gitcoin ). The dog tokens don’t seem to have hit Vitalik’s humor. Because Vitalik sells such large quantities, the price of dog tokens is currently falling. The situation is still evolving ad I write.

There is still no statement from Vitalik. Some speculate that this activity was done on purpose. See, because of the meteoric rise of those dog tokens that utilize the Ethereum blockchain, the network became very “crowded, slow and expensive”. Speculators think that Vitalik did this on purpose to clear out the “dirt” from the network. Additionally, the crypto community was divided into two parts:

  • People who bought “Shiba Inu” are annoyed about the price loss. You can see on the blockchain that Vitalik receives “Fuck you Vitalik” tokens from some people
  • People who think the hype about dog tokens is stupid and hope that the sale will put an end to the madness. The hype about the coins is currently causing extreme congestion on the Ethereum blockchain. Those people hope with the disappearance of such projects, the network would “relax”.

Elon Musk, in turn, got salty that Vitalik crashed his beloved meme coins and started fearing that he would crash Dogecoin, too. That’s when Tesla’s deus ex machina, now also faithfully followed as a financial guru by ranks of investors, has made it known that he will stop accepting cryptocurrency for the purchase of his electric vehicles. Because the mining activities that generate bitcoin today require too much energy, first of all the worst, that from fossil sources, to the detriment of the environment.

As is his habit, Musk entrusted the announcement to a tweet: Tesla “suspended vehicle purchases through the use of bitcoin“, in the face of “the rapidly growing use of fossil fuels for mining” the currency. And the Bitcoin immediately pays the duty, with a collapse of more than 11% and the value that stands at around $ 50,854. Ethereum capitulates by nearly 9%, Ripple by around 10%, as does the parody currency Dogecoin. Musk himself had made the fortune of Bitcoin when, a few months ago, he announced that Tesla had invested 1.5 billion dollars in the digital currency and had declared that it would allow potential buyers of electric cars to make payments in Bitcoin.

Musk confirmed that he remains a fan of cryptocurrencies over the long haul. “It’s a good idea and we believe it has a promising future. But not at the expense of the environment ». Musk has specified that he will not sell the bitcoin assets in which he has invested so far. And that it will return to accept it for tarnsations and purchases of its products as soon as the knot of energy consumption has been solved, “when there has been a transition of mining towards more sustainable energy sources”. In the meantime, Tesla is not abandoning the field of digital currencies anyway, in fact it will consider other cryptocurrencies more ecological rivals that use “less than 1% of Bitcoin’s energy per transaction”. Musk didn’t mention names. Bitoin burns the energy of an entire state such as Poland every year. One of the green alternatives in vogue today is for example Chia,

The criticisms of Tesla had actually multiplied since Musk had decided to promote bitcoin and other cryptocurrencies: beyond their speculative character under accusation, their often extraordinary environmental impact had ended. It seemed even more at odds with the image of a company that wants to be a leader in electric vehicles. That decision to marry Bitcoin in February came with a Sec filing in which Tesla revealed that he had invested $ 1.5 billion in the currency. Not only. He said he wanted to consider further exposure to cryptocurrencies and above all he wanted to accept bitcoin for the payment of his vehicles. Tesla then sold 272 million in Bitcoin pocketing a profit of over one hundred million reported in the latest quarterly report. Musk, “Influencer” with millions of followers on Twitter, even a fan of Dogecoin, a meme uniform born as a joke, said he was. On digital uniforms, highlighting his influence, he joked as the guest of honor last Saturday of the popular American satirical TV show Saturday Night Live, calling them a “hustle”, in fact a scam. Dogecoin had lost up to 30 percent on the show.

Some say the real reason Elon stopped accepting bitcoin for Tesla’s seems to be that Tesla Inc is seeking to enter the multi-billion dollar U.S. renewable credit market, hoping to profit from the Biden administration’s march toward new zero-emission goals, two sources familiar with the matter said.

Apart from corporate reasons, Elon is clearly buying the dip and he’s gonna pump other altcoins soon. It is all a master plan to make more billions. We all have to figure out what cryptos he’s talking about when he says: “We’re looking into more energy efficient Cryptos.”

This was obviously all pre-planned all along, but Vitalik’s move and CZ’s public warning against meme coins just have accelerated the roadmap that Elon had in mind:

  1. First, announce Bitcoin payment possibility to bring awareness. 
  2. Pump Doge for further awareness. 
  3. Lastly, dump Bitcoin to prove to Vitalik and CZ that he can also control classic coins and prepare the next boost of altcoins (buy the dip of new energy-efficient coins and pump them like he did with Dogecoin).

I am disappointed. 

Decentralized finance? Really? It seems to me like an ego war among three billionaires, as always in the history of financial markets.

Yet, a bullrun doesn’t end because Musk tweets one night. Btc has lost 15%, practically nothing if you have ever seen the historical chart of btc, and it is already recovering. When whales dump the movements are pretty similar. Those who lost most in the game yesterday are those who had invested in dog meme coins blindly because musk told them it was the future, and now they have lost their money and find themselves in a world they absolutely don’t understand, destined to lose more money if they don’t start studying. If you have some basic knowledge you can easily go through this dip and use it to shop coins just like the whales and institutions are doing.

Lastly, it turned out major liquidity pools on uniswap v3 were hacked:

https://medium.com/xtoken/initial-report-on-xbnta-xsnxa-exploit-d6e784387f8e

Of course conspirators now are trying to say that the social media spectacle that Vitalik and Elon set up today was just to cover these malicious rug pulling actions that are believed to have been made by the two themselves in agreement with one another, but that argument is taking a simple titan war a bit too far into the fantasy world.

Veterans of the crypto world are not falling for this market manipulation and are rather quite happy to enjoy some unexpected shopping time at the dip.

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Eloisa

Today, at only 23 years of age, having advised over 35 startups, having registered patents and invested directly into 4 FinTech companies, Eloisa is cited as an expert in Forbes, has been dedicated an article on Interesting Engineering, Yahoo Finance and News, APnews, BusinessInsider, etc. and has topped many other lists as the n.1 Tech Leader and Most High Paid Tech Speaker, in fact still speaking on the stage of events in all continents.

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