Confident and miss the warning signs. Smart and get crushed by out of the blue circumstances. Human error is part of the journey of life.
The crypto market has revealed in the past two months that even techno-geniuses are at the mercy of market wide fear. No coin or project has been spared.
BlockFi, Terra Luna, Babel Finance, 3AC, and Voyager all had little to no risk management strategies in place for when the market would naturally revert to a bearish season – after the spectacular bull run since 2020.
The good news – the projects that are serious about dominating the digital asset market keep building. They know that winter is a season, not a permanent state. 2020 prices are coming to a Trading View chart near you.
From these case-studies of "Smart Doesn't Mean Invincible", the digital asset market will ask better questions of these projects and protocols, such as...
What's the risk management strategy?
How are reserves managed?
What is the lending criteria for large loans?
What is the liquidation strategy for collateralized loans?
How are user funds protected from ego, greed, and market euphoria?
What impact will this project have on business and life?
At the end of the day, it's about utility, users, and sustainability.
Projects have learned not to underestimate any of these mission critical elements.
Let's dive into what the data says about the next two weeks...
Week 28 of 52
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