Imagine you are in a casino where the owner continuously prints more chips and gives them away for free to his employees, while forcing you to buy those chips with real money. You are not investing. You are funding the lavish lifestyle of those who created the game and paying the KOLs who are performing on social media.
Avalanche is a prime example of the Cantillon Effect in the Crypto world. The founding team and venture capital (VCs) are right next to the "token printer". They benefit from dumping on the crowd through brutal Unlocks. You are the last to receive the "value" that has been diluted to worthlessness, while the creators have long taken their profits.
The praises of "Solana Killer" or "Subnets" are just flashy terms to cover up an empty system. The logic is very simple: If a Layer 1 does not have real cash flow from users and actual applications, it is just a giant liquidity trap. The current AVAX ecosystem is a desert with no life, where only bots trade with each other to create fake volume.
The crowd is trapped in Academic Blindness. You believe in the credentials of Emin Gün Sirer but forget to look at the balance sheet and the selling pressure from the supply side. The KOLs are urging you to catch the bottom, but they are actually just puppets with no Skin in the game. They are paid to turn you into liquidity for their masters.
The old peak is an illusion built on the excessive excitement of the old cycle. In the stoic world, we do not live by hope, we live by truth. Do not let the Sunk Cost Fallacy make you pay with your entire fortune.
Protect the remaining capital by switching to Stablecoin or BTC and staying out of this massacre. When AVAX hits 1,x USD, then we can start talking about real value. Currently, all attempts to catch the bottom are financial suicide.
The next collapse scenario of "zombie" Layer 1s has been analyzed more deeply on Substack. If this article helps you wake up and preserve your money, please send a Tip as a confirmation that you have separated yourself from the ignorant crowd. 📉⚠️
