GM. 

So last week was one of the craziest weeks in crypto in a long time. If you're not into crypto and are not affected by any of the drama then you might want to skip today's issue. Come back tomorrow for Just The Tech. 

OK let's dive into the drama.

The UST and Luna Chaos

• $UST - one of the largest dollar-pegged stablecoin (worth around $18 billion at its peak) got hit with a major attack to try to break the peg
• Someone pulled a "George Soros", took out a loan of $350 million and started shorting $UST - this caused a minor depeg
• LFG started selling $ETH and $BTC to buy $UST and bring back the peg which was exactly what the attacker wanted because they were actually shorting $BTC 
• Mass panic hit and people were withdrawing their $UST and cashing out. It was every man for himself
• Capitulation

As of now:

• $UST is now at $0.178
• Luna price went from $85 (two weeks ago) to $0.00028 😨 (at the time of writing)

With the whole Luna collapse and macro environment, it's safe to say that we might be on the verge of a crypto winter. 

Here are some tips from heavyweights who have seen their fair share of it:

Changpeng Zhao (CEO of Binance)

• If you panic during a dip, you are probably overinvested.
• Try to reduce your investment size by 2x or 10x.
• You will be in a much better position to control your emotions. Only increase your position when you can handle your emotions. 

Punk 6529

• Review your emotions, and look into how you're taking the drop. It will teach you about your psychology and how much risk you can tolerate
• Forget about "ATH net worth number", look at what your situation is today and make good decisions
• Do not try to predict the market
• Plan for various scenarios
• Think about your non-crypto life and keep your fiat cash flow going as long as possible so you can invest in crypto during the dip
• Build a crypto-related skill 
• Be normal and enjoy life
• If you don't know where the free money is coming from, avoid high yield tokens
• Zoom out and look to 2030. Prices will go up and down but the digitisation is up only 

To quote Fred Ehrsam (Co-Founder for Paradigm and Coinbase)

“Cycles are neither good nor bad; they are natural. Peak euphoria provides the opportunity for the world to dream about the future. Rock-bottom despair forces practicality and clarity. When things are good, they're never as good as they seem; when things are bad, they're never as bad as they seem.

I do know that every past cycle has left crypto stronger than where it started. Times when things feel like they are going well, are the times to build resiliency and set yourself up for success no matter what the future holds. I hope you embrace that opportunity."

Before you go...

• Check out issue #46 where we talked about the 5 levels of wealth💲
• Follow us on Twitter
• Have any friends or colleagues that would be interested in this issue? Forward them this email!
• You could also read past issues here

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