The Golden Rule: "Not your keys, not your coins"

gm ☕

Volatility around SOL has migrated along the increasing volatility to push the lower end of my trading ranges down into the mid-single digits. There is much less upside to this trade in the upper teens than there is downside. With ranges this wide you need to be extremely careful if you are utilizing leverage in order to not get liquidated on pumps and dumps since there will be wild swings. We are trading around

CZ tweets something positive and you see the price moon, then come back down to reality on more negative sentiment. People are legitimately panicking around the state of Solana and many are moving assets off exchanges. Could there be more shoes to drop? I don't know. However, the volatility right now tells me that if you are in SOL you should consider a de-risking to USDC.

This is probably a good time to remind folks that even trusted stables like USDC and USDT may be the next black swan event in this crypto crash. These are akin to the money market funds pre-GFC (Global Financial Crisis) where funds were allowed to take on fairly significant default risk in the debt instruments they bought to bring you that nice $1.00 stability of "cash" except it never was cash and it never will be.

Today the money market funds are significantly better, but they still own debt instruments so there is always another potential "breaking of the buck" even potentiality on the horizon. USDC and USDT are like the old money market funds in that they own have significant default risk imbedded in their underlying holdings, at least what they are reporting.

We just saw with SBF that what someone says and what someone does are two very different thing and without proper regulation it's impossible to say for sure what's behind the veil. What does that mean for you and I? Stay safe, get your funds into self-custody off an exchanged whether its a CEX or a DEX, the cardinal rule in crypto is "not your keys, not your coins". This crash is far from over.

Thanks for stopping by The Metaverse Illuminated, I trust this edition has brought more to light for you. Remember, you call the shots, take what works for you, discard the rest.

Stay alert for the next edition of TMI, until then you can follow me on my: socials.