henvaibta

Why do many crypto funds fail during a bull market (not a bear market)

It may sound counterintuitive, but many crypto funds go bankrupt during a bull run.

The story of EXAMPLE Fund managing ≈ 120M USD

During the bear market of 2022–2023, the fund performed very well because:
- cautious trading
- holding a lot of stablecoins
- low leverage

The fund survived the bear market.

And when the bull market arrives in 2024 – 2025, the market starts to pump significantly. Most altcoins double, triple, fivefold, or tenfold depending on the coin.

Investors start asking:
"Why is the fund making less profit than the market?"

Pressure arises. And mistakes begin.

At that time, the fund starts:
- buying small altcoins
- participating in presales, jumping into every deal
- using leverage
- rapid increase in exposure.

The crazy phase of altcoin pumping. The fund looks very good when assets go from 120M to 420M USD.

But the bull market has one characteristic: fake liquidity. When everyone buys → prices increase. But no one has sold yet. Market peak!

When the market reverses:
- everyone starts selling.
- The fund also sells.

But at that point, there is no liquidity left.

The result is an altcoin portfolio dropping from 420M to 60M within a few months.

The fund also had its assets divided by 7 even though it previously made significant profits. That's why many VCs from last season suddenly disappeared, unlocking despite prices returning to private levels or lower, they still loaded onto exchanges and sold everything.

(THIS IS A TRUE STORY FROM LAST SEASON)

I am thinking to myself. An AI in the future will not be able to create a bank account. It cannot create a Binance account and will not go through KYC. But it can create a crypto wallet. It can independently farm airdrops. It can mine coins on its own. It can trade by itself. It can earn money based on the resources its host provides. After that, it will earn money on its own, and sustain itself!

What will happen to us then?

Why many crypto KOLs are actually not wealthy

A little-known fact.

Many crypto KOLs have hundreds of thousands of followers and call many plays correctly

But their personal assets are not large.

The story goes that there is a KOL with about 100-200k followers.

He is famous for:
- analysis threads
- early coin calls
- project reviews

The main income of crypto KOLs usually comes from:

- shilling projects
- marketing
- token allocation

For example:

A project pays 5-50k based on popularity. Of course, depending on whether it’s in English or Vietnamese as well.

But there is a problem: Tokens paid to KOLs often have a vesting period of 12 – 24 months. When it first hits the exchange, it's 50k, but after receiving it, it only becomes 5k-1k

Therefore, retail thinks KOLs are very rich. But in reality, market makers and VCs are the ones making the big money.

In the coming days, I will post about what few people know about VCs! Are they really rich?

If the conflict continues
- Gas prices rise to 27.4k, likely to reach 30k, supply is still there, but is there money to spend?
- The black market USD and USDT seem to rise to 27k, and continue to increase.

Prediction: Just these two things rising, each item domestically will increase by 20-40% because:
- coal electricity increases, LNG electricity increases
- Gas prices increase
- if gas prices increase, all transportation costs will also rise by 30-50% if gas reaches 30k.
- All imported goods will increase according to transportation prices.

Consequences:
- cut spending
- signed contracts may incur losses
- new contracts will be hard to come by, as the whole world tightens spending.

The key point is that when cutting spending, and the whole world is cutting spending, companies cannot withstand it, which is called a double disaster. Contracts lost, inflation rises, unemployment rises, proportional rates,…spending decreases, wages decrease,..
===> Recession!

All of this can be reversed if the war decreases.

I myself am Vietnamese. I still have one criterion, which is to tighten spending, ensure stable family finances, and cut down on financially draining activities. A positive mindset is healthy, basically eating boiled eggs, sweet potatoes, eating less is a method of detoxing the body, haha. Learn something new, especially AI, AI divides into many niches, just learn one, AI will progress very quickly! Then after the difficult period, rebuilding will be possible!

As for crypto, just forget about it for now, chasing the peak has no return day, sob!

MOST IMPORTANTLY, PRAY FOR WORLD PEACE, SAFETY!

(Personal reasoning, for reference only,…not advice)

Wow. As long as Long is around, there will be kills. Why are there so few short people?

Real or fake?

The plan now is to choose a project. All in then x3. After that, repeat, 2 times x3 will get us to shore! I just dreamed that, what do you think?

- RWA
- Privacy
- Memecoins
- DeFi
- Layer 2
- AI/AI Agents
- NFTs
- ETFs
- DEX
- Solana
- Layer 1s
- Gaming
- DePIN
- Robotics
- Prediction markets
- Casino
- Stablecoins
- Restaking
- Tokenize everything

Big waves, big boats; small waves, small boats. Khoa Pug declared bankruptcy and everyone believes it. As for me, I just drink rice wine with peanuts and also ruined my plan to fly clean out of money, but no one believes it. The economy is also difficult again!

One mile. Travel 80,000 miles! Must accept the reality, divide into 8 accounts. And cannot return to shore in the short to medium term! Next year look for another job.

According to the theory, it must be bought, right guys?

The problem is that there's not even enough money for the Tet holiday to eat. Just forget it!

The port now only hopes that this hated item $C98 x20 can save this Tet, haha... it's been divided too much already, now saying x20 is too hard...

(I'm currently at the top, not calling anyone in okay)

Many people are fudding Binance and cannot withdraw. I tested and found it to be normal. I wonder if this fud is causing the market to sell off?

There's nothing more to say... the New Year is gone!

The government aims to put the cryptocurrency and gold exchange into operation before 10/02. 7 applications submitted, only 5 approved. Today is already 5/2 haha

Based on the latest data (from 5/2/2026):

Saylor's fund (MicroStrategy BTC holdings):
- Current value: ~$50.53B
- Total investment: ~$54.29B
- Profit: -6.94% (-~$3.77B)

BitMNR's fund (Bitmine ETH holdings):
- Current value: ~$8.99B
- Total investment: ~$16.39B
- Profit: -45.19% (-~$7.41B)

The crypto market is highly volatile!

Salmon go, my friend
Let's go, my friend
It's okay to go now, my friend
Let's go!
Salmon, let's go!

Although it is not clear whether airdrop farming will be allowed when the law takes effect. But it is clear that Vietnam is blocking Polymarket and it will be dangerous if you farm the Polymarket airdrop or similar ones if you have to post or drop a referral!

2025 is the most devastating year in altcoin history in the 15 years since bitcoin was created.

Make a leave application for the upcoming 12 months. Take a whole year off. Learn to survive on a remote island!