The collapse of FTX has revived the narrative that “Bitcoin maximalists were right all along”.
Given the size of the troubled exchange and the number of entities caught on its web, the FTX scandal has dominated the headlines of late.
To make matters worse, each day brings more twists and turns, demonstrating serious flaws within the companies and regulatory bodies that were supposed to prevent these scandals from happening in the first place.
In particular, the political influence and ties of Sam Bankman-Fried (SBF) and FTX’s apparent “path” with the Securities and Exchange Commission (SEC) have been called into question.
Behind the veil of high-profile sports and celebrity endorsements, FTX has managed to build a credible reputation in a relatively short period of three and a half years. The skeptic said the red flags were always there, but that’s no consolation for someone who relied on his FTX to lose big.
The heart of the scandal is FTX’s native FTT token and how it is managed. During the liquidity stress testing process, it fell short of justifying its pre-collapse valuation of $3.4 billion.
The ultimate result of the scandal is billions of dollars in losses as the industry struggles to maintain what little reputation and credibility it has left.
Arguably, bankruptcy created a new wave of Bitcoin maximalism. As some say, their vitriol against sh*tcoins has proven to be marked time and time again.
Self-Casting Bitcoin as the Answer
The leading cryptocurrency is simple in design and by all accounts a dinosaur in terms of technology. But Maxis points out that these same “flaws” are what make Bitcoin the only digital asset to own.
Based on the rationale that Bitcoin has no oversight infrastructure, fraudulent incentives, or special-rights groups, Maxis argues that the principles of decentralization, transparency, and immutability apply only to BTC. I’m here.
The bitcoin-only crowd has been labeled toxic and bigoted in the past by vehemently defending this view. , shows some truth.
Pennies are starting to drop as hits from Celsius, BlockFi, Voyager, Terra Luna and more continue to hit. Trust, simplicity and honesty trump yield and short-term gain.
The BTC maxi movement will only grow stronger as the industry emerges from FTX Black Swan.
Altcoins are “evil”
on-chain analyst Jimmy Song I wrote a long article about “moral claims to altcoins”. He made various points against altcoins, including misusing the legitimacy of BTC and the impact of short-term incentives from VCs.
He claims that “Altcoins are evil”, simply reflecting the fiat currency system, but in a new package. , their proliferation does not lead to economic freedom.
Additionally, Song argued that the altcoin space is hindering Bitcoin adoption, resulting in newer, brighter projects getting more attention, so those who need it most get it. is preventing you from doing
“Altcoins are a cesspool of theft, cronyism and rent-seeking. Altcoins build on the reputation Bitcoin has worked so hard to achieve. , to enrich VCs and altcoin pumps.”
Most people would have labeled such views as extreme or perhaps too black and white in the past. But his constant CeFi scandals this year have made more people accept these points.
On-chain data shows pennies have fallen
Despite the selling pressure affecting Bitcoin’s price in the short term, long-term HODLers continue to believe.
The HODL Waves chart shows the amount of BTC in circulation split by age group representing the time the supply last moved.
The chart below shows a significant increase in the 10+ age group. This has been a noticeable pattern since around 2020. However, the decade-plus wave continues to spread as the BTC price falls.
In addition, the combined age group totaled 76%, a record high.
Analyzing active supply over a wider time range shows a general upward trend in all categories over a year. The most active in 2022 and beyond is his over a year old red group, suggesting relatively recent entrants are maxing out.