Dear friends in the crypto space:
I'm out of the game, goodbye! When I write this letter of withdrawal, I have mixed feelings. Looking back at my years in the crypto space, it has truly been like a roller coaster ride, experiencing countless ups and downs. Memories flood back like a tide, each moment carrying complex emotions.
In 2017, it was a dreamlike beginning. Bitcoin's price skyrocketed like a runaway horse, starting from around $990 at the beginning of the year. I remember the entire market was enveloped in a frenzied atmosphere, with various forums and communities fervently discussing Bitcoin's unlimited potential. As the price continued to climb, media reports flooded in, and Bitcoin became a hot topic on the streets. And in such an environment, I stepped into this mysterious and alluring world of crypto with a yearning for financial freedom and curiosity. I had started working in P2P-related finance in 2012, and I knew that to make money, I had to go where the money was closest.
Meanwhile, the ICO craze surged. By the end of December 2017, 985 ICO projects had been born, raising over $6 billion. In 2013, there were only two ICO projects. It was a crazy era, with new projects launched daily, and white papers flying like snowflakes. These projects painted beautiful visions, from changing the financial system to disrupting traditional industries, each seemingly a golden key to unlock wealth. Like many others, I was drawn in by these beautiful blueprints, investing a lot of time and energy in research and selection. At that time, everyone had a feeling that as long as they seized an opportunity, they could achieve a turnaround in life.
Profit and Loss: No need to say much, everyone remembers the grapefruit (EOS), right? I was also led in by (Captain Wang), and I lost nearly 600,000 RMB.
2018 was like the arrival of a nightmare. The cryptocurrency market experienced crashes, hacks, and bans, beginning a brutal journey of plummeting prices and significantly reduced market capitalization. Bitcoin's price dropped sharply from its high, and other cryptocurrencies were also not spared. This decline was almost sudden and unstoppable; I watched helplessly as my assets kept shrinking, and the pain and helplessness remain etched in my memory to this day. This year, regulatory hammers also began to fall, with tightening regulations globally becoming the market's main theme. The South Korean government strengthened regulations on cryptocurrency trading, banning anonymous transactions and implementing real-name systems; institutions like the SEC also cracked down on ICOs, deeming many ICO projects illegal securities offerings.
In this turbulent year, security issues at exchanges also occurred frequently. On January 26, Japan's Coincheck exchange was hacked, with approximately $400-534 million worth of the cryptocurrency NEM stolen, shocking the entire crypto space. Subsequently, India's Coinsecure exchange wallet was also hacked, resulting in a significant loss of Bitcoin. The crypto space became a cash cow for hackers, and these events raised serious doubts among us retail investors about the security of exchanges, severely impacting market confidence. The fork of Bitcoin Cash (BCH) further plunged the market into chaos, with different interest groups diverging on technological paths and development directions, leading to community splits and further affecting market stability.
Profit and Loss: Started researching contracts, engaging in various knockoffs, and ultimately lost nearly 1 million RMB.
In 2019, the crypto space continued to be turbulent. At the beginning of the year, the IEO (Initial Exchange Offering) model quickly rose after Binance restarted its Launchpad. Huobi and OKEx also launched similar projects, and IEO became the new darling of the market. Investors hoped to find new profit opportunities through this new model, while exchanges sought to enhance their competitiveness. However, the good times didn't last long; just two months later, the enthusiasm for IEO began to fade. Many projects performed poorly after their launch, with some even experiencing price drops, leading to losses for investors.
At the end of April, the USDT crisis hit like a bombshell. The New York Attorney General's Office sued Bitfinex and Tether, accusing Tether of misappropriating $850 million of USDT reserves to cover Bitfinex's losses. This news sparked a trust crisis in stablecoins, causing USDT's price to fluctuate and the entire stablecoin market to be implicated. Binance also faced setbacks this year, with a hack in May resulting in the theft of 7,000 Bitcoins, causing enormous economic losses and deep concerns about exchange security measures. In August, the personal information of over 100 Binance users was leaked, further damaging Binance's reputation.
However, this year also saw some events with far-reaching impacts. On June 18, Facebook released the Libra white paper, instantly attracting global attention. Libra aimed to create a global digital currency, backed by Facebook’s vast user base and resources. Despite facing immense pressure and skepticism from regulatory agencies during its launch, its emergence brought blockchain and digital currency back into the global spotlight, prompting further contemplation about the future development of digital currency. On September 23, the launch of Bakkt was also milestone-worthy, as it provided a new avenue for traditional financial institutions to enter the cryptocurrency field with its first physically deliverable Bitcoin futures product, bringing new opportunities for the integration of the cryptocurrency market and traditional financial markets. I also clearly remember in June when Sun Yuchen (Brother Sun) bid for a sky-high lunch with Buffett.
On October 24, in China, the Central Political Bureau conducted its eighteenth collective study on the current status and trends of blockchain technology, explicitly proposing to make blockchain a key technology for independent innovation. This move injected strong momentum into China's blockchain industry development and elevated domestic attention on blockchain from merely digital currency to the heights of technological innovation and industrial application. Subsequently, Canaan Creative was officially listed on NASDAQ on November 21, becoming the 'first blockchain stock globally,' marking an increase in the capital market's recognition of the blockchain industry, though Canaan's subsequent stock performance reflected the market's complex attitude toward blockchain companies.
Profit and Loss: I don't know what I was doing; I have no more memories, I'm numb, I messed around and lost 400,000 RMB.
In 2020, the halving event of mainstream coins became the focus of the market. Bitcoin welcomed its third halving on May 12, reducing the block reward from 12.5 BTC to 6.25 BTC. Other mainstream cryptocurrencies like Ethereum, BCH, BSV, ETC, and Dash also underwent halving this year. This event theoretically changed the supply mechanism of these digital currencies, leading to market expectations of price increases. However, the market performance post-halving was not smooth sailing, with price volatility remaining intense.
Meanwhile, decentralized finance (DeFi) experienced explosive growth this year. A series of DeFi projects such as Uniswap, SushiSwap, and Yearn.finance emerged like mushrooms after rain. DeFi provides users with decentralized financial services, including lending, trading, and wealth management, breaking some of the constraints of traditional finance. However, the rapid development of DeFi also brought many problems, with risks such as smart contract vulnerabilities and hacking constantly emerging. For example, some DeFi projects were attacked by hackers due to code vulnerabilities, leading to user fund losses. At the same time, China launched pilot programs for digital RMB in several cities this year, such as Shenzhen distributing 'Lihuang Luohu Digital RMB Red Packets,' marking significant national-level practice in the field of digital currency, contrasting sharply with the crypto space's cryptocurrencies, and showcasing different developmental paths for digital currencies.
Profit and Loss: I studied new hotspots after starting my business. Where the hotspots are in the crypto space, there is money to be made. I eventually bought some MakerDAO and finally made a profit of around $700,000, recouping what I lost in the previous two years.
In 2021, the rise of Dogecoin, a hundredfold coin, took center stage. Dogecoin, represented by the Shiba Inu image, surged more than 11,000% over the year. The massive price fluctuations of Bitcoin and other cryptocurrencies became the norm. At the beginning of the year, Bitcoin continued its upward trend from the previous year, constantly setting new historical highs. Market sentiment was high, with new investors pouring in. However, as some countries strengthened regulations on cryptocurrency mining and trading, market sentiments began to shift. For example, China comprehensively cracked down on cryptocurrency mining activities, shutting down numerous mining farms, significantly affecting global Bitcoin hash rate distribution and market supply. Meanwhile, other countries began considering capital gains taxes on cryptocurrency trading, leading to panic selling in the market and significant price declines.
In this year, non-fungible tokens (NFTs) began to rise and became a new hotspot in the crypto space. NFTs, based on blockchain technology, give digital assets unique properties. Many artists, celebrities, and brands have launched their own NFT works or projects. The explosion of Bored Ape Yacht Club, and Lin Junjie’s entry, saw the use cases for NFTs expand from digital artwork to virtual land. Some NFT works fetched astronomical prices at auctions, attracting significant attention and capital inflow. However, at the same time, the NFT market also has a lot of bubbles and speculation, with many low-quality NFT projects flooding the market, and investors need to be cautious in discerning them.
During this time, there were other phenomena and events worth mentioning. Haha, my colleagues and I also engaged in Chia mining, which gained widespread attention during this period, as it uses hard drive space to mine, unlike traditional cryptocurrency mining. This attracted a large number of participants, and hard drive prices soared for a time. However, over time, the returns from Chia mining gradually declined, and market enthusiasm waned. Projects like 'Farmer's World' in blockchain gaming were also once all the rage, combining blockchain and gaming elements, allowing players to earn cryptocurrency through activities like 'mining' and 'gold farming' in the game. However, these types of blockchain games also faced many issues, such as singular gameplay and unstable economic models, leading many projects to decline.
Profit and Loss: Fortunately, this year BTC brought a bull market, and I made a small profit of 1.4 million USDT on ETH and Dogecoin, and in 'Farmer's World,' but lost 200,000 USDT on Chia mining. In the end, I bought 10 sets of three-piece suits (mining machine, fishing boat, chainsaw) and managed to escape at 1.5 million a set.
In 2022, I started running (web 3.0 games) in March and bought shoes, diving back in. Later, the collapse of the Terra ecosystem became a disaster for the crypto space. Terra was a stablecoin project based on blockchain, and its algorithmic stablecoin TerraUSD (UST) experienced severe de-pegging in May. UST was originally a stablecoin pegged to the US dollar, but due to market panic and sell-offs, UST's price rapidly fell, deviating significantly from the dollar exchange rate. This situation triggered a chain reaction, leading to significant devaluation of other cryptocurrencies within the Terra ecosystem, inflicting devastating blows on many investors. This event not only raised severe doubts among investors about algorithmic stablecoins, but also greatly impacted overall confidence in the cryptocurrency market.
Luna Crash: In May 2022, the collapse of Luna had a huge impact on the crypto market. The price of Luna's token plummeted to zero within a few days, and its founder faced numerous economic lawsuits. The collapse of Luna was mainly due to the crash of its algorithmic stablecoin UST, leading to market panic and massive sell-offs, resulting in a sharp drop in token prices.
Three Arrows Capital Bankruptcy: In June, the bankruptcy of Three Arrows Capital further exacerbated market panic. Three Arrows Capital was one of the largest hedge funds in the crypto market, and its bankruptcy dealt a significant blow to market confidence.
FTX Bankruptcy: In November, the bankruptcy of the FTX exchange had a profound impact on the market. The bankruptcy of FTX led to a significant drop in the total market capitalization, and many institutional investors suffered substantial losses, including SoftBank Group in Japan and Temasek Holdings in Singapore.
In this year, Ethereum completed its transition from Proof of Work (PoW) to Proof of Stake (PoS), marking a significant upgrade to the Ethereum network. The merged Ethereum saw notable improvements in energy efficiency, network security, and scalability. This upgrade is considered an essential milestone in Ethereum's development journey, impacting the technological development direction of the entire blockchain industry. However, the market's reaction to Ethereum's merger was not entirely positive, with price fluctuations persisting, reflecting market complexity and diverse investor sentiments.
Profit and Loss: I started researching SOL because of running, but then the SOL crash collapsed my investment when I bought in around 40 at 1 million USDT and bought a bunch of random coins at low prices.
In 2023, the investigation and hefty fines against Binance became the focal point of the crypto space. Binance, being one of the largest cryptocurrency exchanges globally, was investigated by the U.S. Department of Justice and the Commodity Futures Trading Commission for alleged money laundering, unlicensed remittances, and sanction violations. Ultimately, Binance was fined heavily, sparking significant concern in the crypto community regarding exchange compliance. Other exchanges began self-examining and rectifying to avoid similar regulatory risks. Meanwhile, global regulatory policies on cryptocurrency have further strengthened, with countries and regions continuously improving and enacting new regulations to standardize the development of the cryptocurrency market and protect investors' interests. These regulatory measures include registration and licensing requirements for cryptocurrency trading platforms and restrictions on cryptocurrency advertising, leading to significant changes in the development environment of the crypto space.
Profit and Loss: Started trading, began playing on-chain, and wasted nearly a year, fortunately, I accumulated some ETH early on, so I didn't have much profit or loss.
2024 was another dramatic year for the crypto space. After experiencing earlier fluctuations, Bitcoin's price finally broke the $90,000 mark for the first time on November 13, sparking renewed market discussion and attention. However, by this time, I had lost the excitement and impulse of the past. Throughout this journey, I have witnessed too much rise and fall, and I have endured too many pains and struggles.
Profit and Loss: I finally cleared out all my assets, and now I have about 6 million USDT left, with a bunch of random coins all cleared out.
But behind this number are countless nights of torment. I have watched the screen in the dead of night, my heart racing with the price fluctuations; I have fallen into deep despair due to one liquidation, feeling as if the world had turned dark; I have lost myself amid market volatility, continuously investing more in an attempt to recover losses, only to fall into deeper troubles. Those painful memories are like scars etched on my heart.
I decided to leave the crypto space and return to a normal life. I miss the warm moments spent with family, those days without market fluctuations and digital pressures. I long to laugh and chat with friends, rather than discussing price trends and the latest project news. I hope to regain my inner peace, to appreciate the morning sun, feel the evening breeze, and enjoy the simple yet real beauty of life.
But I want to say that I still love this circle. The market is like a strict teacher to me, teaching me many valuable experiences. Here, I witnessed the greed and fear of humanity, as well as the power of innovation and exploration. I have seen blockchain technology evolve from a vague concept into a technological force that could change the world. I know that countless dreamers are pushing the industry forward. Although I chose to leave, I will always keep an eye on the development of the crypto space, hoping it can grow in a healthier and more stable direction.
Lastly, I want to say to my friends still fighting in the crypto space, this is a path filled with thorns. In the pursuit of wealth, do not forget your original intentions, and do not let greed blind your eyes. Always remain vigilant, respect market rules, and manage risks well. The crypto space is just a part of life; regardless of the outcome, do not let it occupy your entire life. I hope you can find your balance and happiness in this world full of challenges and opportunities.
Goodbye, crypto trading. I will continue in the crypto space in another way. Next, I will invest using a simple approach (dollar-cost averaging), start focusing on the surrounding culture of crypto, and freely share the original trading mindset and trading forms.
Thank you for everything you've given me; those laughs and tears will forever be the most precious wealth in my life, etched deep in my memory.
