Time to FUD myselfSo Binance announced the split between a US and an International exchange, essentially how Bittrex US - Bittrex International had it for some time. Binance already has the Jersey, Singapore and other compliant platforms which you can access with fiat. But no shitcoins. Ouch. Another thing, CZ has always been the guy who is able to stick a stiff one into the legal questions and make his movie keep rolling. That's why Binance managed to have that liquidity, one of the reasons. Whatever your beef with them might have been, they are still a freaking leader.
But this recent trend of hardcore regulatory pressure shows that no one can escape the big brother, even CZ of Binance. Considering that a huge amount of volume is coming from the US, this essentially says that
shitcoins will not be available to that huge capital anymore, unless you go really illegal and buy KYC accounts.Let's split assets into 2 categories:
1) BTC, ETH, and major (old) alts which might be useless - but they are so old, they are compliant. Those will be available to the big capital which are trying to do portfolio management or whatever else, just putting money into every big coins and stuff like that. Inflow of capital. Everyone needs it.
2) Shitcoins. I love shitcoins. Shitcoins is everything that is not BTC, ETH or the useless old alts which managed to become somewhat compliant. Those will be available only either via some shady routes and shady KYC stuff, or on smaller exchanges. Smaller exchanges means low liquidity. Low liquidity means it's easy to pierce through the books with 1 ETH orders. Easy to pump, easy to dump. Thst's fine! But there is one problem. It mean they might never outgrow that period. Because big capital might never get access to them.
And this trend might just continue.
Big capital is compliant, and will be restricted access to those volatile assets, our lovely shitcoins.What is the problem of shady routes and buying KYC accounts? Compare Silk Road to a compliant market. Despite everyone in crypto liking the new paradigm and so on, everyone benefits from big money coming in, even if it is stupid. Don't you want banks, family offices, or businesses to start buying your shitcoins? Of course, you do! But then you need to comply. Everything here is built on economic incentives after all. I wouldn't say volume will shit to those who accept the US, because nowhere where there is volume - US is accepted.
There is always information assymetry. Not everyone will learn how private keys work, only 5% will. Not everyone will know what your project does, only 5% will. The rest is a crowd, and you need that crowd to grow as a company, project, product, or whatever else. And the more we are pressured, the harder it is to get that 95%.
Rephrased from some twitter post I saw yesterday:You: I want to trade this asset.
Gov: you can't, it's not compliant.
You: but freedom of money?
Gov: you will lsoe money, we can't let you do it.
You: ok I understand, I studied. May I?
Gov: no, you can't buy this.
You: but it has good risk-return exposure.
Gov: no, get 1% interest and stay poor.
You: ...
Gov: JAIL.
