James Wynn's experience taught all cryptocurrency enthusiasts a lesson. He relied on luck to turn 3 million into 100 million, only to lose it all within a week, making the entire process thrilling and intense.
This incident revealed several painful issues:
First, perpetual contracts are essentially high-risk gambling; inexperienced individuals who jump in are just giving away money. Wynn himself admitted that he previously only knew how to trade MEME coins, and suddenly diving into contracts was purely reckless.
Second, the publicly available on-chain data became a shackle, with hundreds of thousands of spectators preventing him from backing down. Earning money made him a deity, while losing made him fear being ridiculed; this pressure forced him to keep gambling, wanting to recover losses while fearing embarrassment, resulting in a downward spiral of losses.
Third, the irrational atmosphere in the cryptocurrency space is harmful. The myth of getting rich quickly attracts people to go all in, but no one mentions that preserving wealth is a hundred times harder than making money. The numbers bouncing on the screen can be intoxicating, greed blinds one’s eyes, making them forget that behind virtual currencies are real money and assets.
Contracts are not meant for ordinary people. Exchanges are always the winners, collecting transaction fees regardless of the outcome, and players lose nine out of ten bets. Wynn's lesson is enough to make retail investors anxious; money earned through luck will eventually be lost through skill. If you truly want to trade cryptocurrencies, stick to spot trading, avoid leverage, and definitely do not bet your entire fortune in a casino.