There's no such thing as too big to fail in crypto

The biggest lesson in this and the past bear markets is that there's no such thing as too big to fail in crypto.

Mt. Gox handled 70% of all bitcoin transactions in 2014. In the same year, it went bankrupt.

Luna was in the top 10 cryptocurrencies during the last bull run. A few months after, its value went from $115 to $0.00009.

Recently, FTX, the second fifth biggest exchange today, has been found to be insolvent and is currently on the verge of going bankrupt.

In all these events, thousands, if not hundreds of thousands of people, were fucked over with no recourse in sight. There's no security in numbers in the crypto space.

During the bull run, you'll hear people say how a project is good if it has a solid community behind it. But the harsh reality is a solid community wouldn't be able to do jack-shit for you when shit hits the fan.

The key takeaway is, when you invest in crypto (read as gamble), be prepared to take responsibility for your shit.

Be prepared to protect your own coins in your own wallet. CZ won't keep your crypto safe, and neither will Kraken. You absolutely have no recourse when a CEX loses your coins, just look at what happened to the Mt. Gox customers 8 years after the company's collapse, and they still can't take back their coins.

Be prepared to make YOUR OWN financial decisions. Don't listen to those influencers or sometimes even echo chambers that tell you to HODL-- you'll most likely be fucked if you do. Despite the popular advice, DCAing and HODLing are more nuanced than some people make them out to be; sometimes, selling all your coins at a loss may be a better move.

Lastly, never trust crypto CEOs. When they tell you everything's okay, the project is most likely fucked. If they tell you they're not on the run, they're absolutely running away for their lives. If they tell you they're sorry, they are not; it's just their PR speaking.

These lessons may all sound harsh and unreasonable but it is the sad reality. It is the price we need to pay for decentralization.

Edit: FTX was not the second biggest exchange. Thanks for the comment that pointed it out.