The crypto market crashed in June 2022. Bitcoin and other cryptocurrencies hit their lowest prices in over a year, causing market panic. Some believe this crash will benefit future investors.

Before I discuss how this crash might help investors, let's examine why it happened. Inflation in the U.S. reached a 30-year high in 2022 after Russia invaded Ukraine. In response, the U.S. Federal Reserve raised interest rates by 0.5%, the most in almost 20 years. This hurts cryptocurrencies like Bitcoin. Higher interest rates make people less likely to invest in volatile assets like crypto, so many investors sold quickly.

The crypto market collapsed. Bitcoin, Ethereum, and Binance dropped 40%. Other cryptos crashed so hard they were delisted from almost every exchange. Bitcoin peaked in April 2022 at $41,000, but after the May interest rate hike, it crashed to $28,000. Bitcoin investors were worried. Even in bad times, this crash is unprecedented.

Bitcoin wasn't "doomed." Before the crash, LUNA was one of the top 5 cryptos by market cap. LUNA was trading around $80 at the start of May 2022, but after the rate hike?

Less than 1 cent. LUNA lost 99.99% of its value in days and was removed from every crypto exchange. Bitcoin's "crash" isn't as devastating when compared to LUNA.

Many people said Bitcoin is "due" for a LUNA-like crash and that the only reason it hasn't crashed is because it's bigger. Still false. If so, Bitcoin should be worth zero by now. We didn't. Instead, Bitcoin reached 28,000, then 29k, 30k, and 31k before falling to 18k. That's not the world's greatest recovery, but it shows Bitcoin's safety.

Bitcoin isn't falling constantly. It fell because of the initial shock of interest rates, but not further. Now, Bitcoin's value is more likely to rise than fall. Bitcoin's low price also attracts investors. They know what prices Bitcoin can reach with enough hype, and they want to capitalize on low prices before it's too late.

Bitcoin's crash was bad, but in a way it wasn't. To understand, consider 2021. In March 2021, Bitcoin surpassed $60k for the first time. Elon Musk's announcement in May that he would no longer support Bitcoin caused a massive crash in the crypto market. In May 2017, Bitcoin's price hit $29,000. Elon Musk's statement isn't worth more than the Fed raising rates. Many expected this big announcement to kill Bitcoin.

Not so. Bitcoin crashed from $58k to $31k in 2021. Bitcoin fell from $41k to $28k in 2022. This crash is smaller. Bitcoin's price held up despite tensions and stress, proving investors still believe in it. What happened after the initial crash in the past?

Bitcoin fell until mid-July. This is also something we’re not seeing today. After a week, Bitcoin began to improve daily. Bitcoin's price rose after mid-July. Bitcoin's price fluctuated throughout the rest of 2021, but it topped $67k in November. Despite no major changes, the peak occurred after the crash. Elon Musk seemed uninterested in crypto and wasn't likely to change his mind soon. What triggered this peak? Nothing, really. What really happened is that people got over the initial statement. They forgot.

Internet users have goldfish-like attention spans. People quickly forgot the crash's cause and were back investing in crypto months later. Despite the market's setbacks, more crypto investors emerged by the end of 2017. Who gained from these peaks? Bitcoin investors who bought low. Bitcoin not only recovered but also doubled its ROI. It was like a movie, and it shows us what to expect from Bitcoin in the coming months.

The current Bitcoin crash isn't as bad as the last one. LUNA is causing market panic. LUNA and Bitcoin are different cryptocurrencies. LUNA crashed because Terra wasn’t able to keep its peg with the USD. Bitcoin is unanchored. It's one of the most decentralized investments available. LUNA's distrust affected crypto prices, including Bitcoin, but it won't last forever.

This is why Bitcoin will likely rebound in the coming months. In 2022, people will get over the rise in interest rates and the crash of LUNA, just as they did with Elon Musk's crypto stance in 2021. When the world moves on to the next big controversy, Bitcoin's price will soar.

Bitcoin may recover for another reason. Like controversy, interest rates fluctuate. The Russian invasion caused this inflation. World markets will stabilize, prices will fall, and interest rates will drop.

Next, lower interest rates could boost Bitcoin's price. Eventually, it will happen. The U.S. economy can't sustain such high interest rates. Investors will put every last dollar into Bitcoin if interest rates fall again.

Bitcoin has proven to be a stable investment. This boosts its investment reputation. Even if Ethereum dethrones Bitcoin as crypto king one day (or any other crypto, for that matter). Bitcoin may stay on top of the crypto ladder for a while. We'll have to wait a few months to see if any of this is true.

This post is a summary. Read the full article here.

Market fraud

Due to its decentralized and fragmented character, the crypto market has integrity difficulties.

Cryptocurrencies are an immature sector, therefore market manipulation becomes a bigger issue. Many research have attempted to uncover these abuses. CryptoCompare's newest one highlights some of the industry's most typical scams.

Why are these concerns so common in the crypto market? First, even the largest centralized exchanges remain unregulated due to industry immaturity. A low-liquidity market segment makes an attack more harmful. Finally, market surveillance solutions not implemented reduce transparency.

In CryptoCompare's latest exchange benchmark, 62.4% of assessed exchanges had a market surveillance system, although only 18.1% utilised an external solution. To address market integrity, this measure must improve dramatically. Before discussing the report's malpractices, note that this is not a full list of attacks and hacks.

Clean Trading

An investor buys and sells concurrently to increase the asset's price. Centralized and decentralized exchanges show this misconduct. 23 exchanges have a volume-volatility correlation < 0.1 during the previous 100 days, according to CryptoCompares. In August 2022, Exchange A reported $2.5 trillion in artificial and/or erroneous volume, up from $33.8 billion the month before.

Spoofing

Criminals create and cancel fake orders before they can be filled. Since manipulators can hide in larger trading volumes, larger exchanges have more spoofing. A trader placed a 20.8 BTC ask order at $19,036 when BTC was trading at $19,043. BTC declined 0.13% to $19,018 in a minute. At 18:48, the trader canceled the ask order without filling it.

Front-Running

Most cryptocurrency front-running involves inside trading. Traditional stock markets forbid this. Since most digital asset information is public, this is harder. Retailers could utilize bots to front-run.

CryptoCompare found digital wallets of people who traded like insiders on exchange listings. The figure below shows excess cumulative anomalous returns (CAR) before a coin listing on an exchange.

Finally, LAYERING is a sequence of spoofs in which successive orders are put along a ladder of greater (layering offers) or lower (layering bids) values. The paper concludes with recommendations to mitigate market manipulation. Exchange data transparency, market surveillance, and regulatory oversight could reduce manipulative tactics.

The easiest online explanation.

Web3 is growing. Crypto companies are growing.

Instagram, Adidas, and Stripe adopted cryptocurrency.

Bitcoin and other cryptocurrencies made web3 famous.

Most don't know where to start. Cryptocurrency, DeFi, etc. are investments.

Since we don't understand web3, I'll help you today.

Let’s go.

1. Web3

It is the third generation of the web, and it is built on the decentralization idea which means no one can control it.

There are static webpages that we can only read on the first generation of the web (i.e. Web 1.0).

Web 2.0 websites are interactive. Twitter, Medium, and YouTube.

Each generation controlled the website owner. Simply put, the owner can block us. However, data breaches and selling user data to other companies are issues.

They can influence the audience's mind since they have control.

Assume Twitter's CEO endorses Donald Trump. Result? Twitter would have promoted Donald Trump with tweets and graphics, enhancing his chances of winning.

We need a decentralized, uncontrollable system.

And then there’s Web3.0 to consider. As Bitcoin and Ethereum values climb, so has its popularity. Web3.0 is uncontrolled web evolution. It's good and bad.

Dapps, DeFi, and DAOs are here. It'll all be explained afterwards.

2. Cryptocurrencies:

No need to elaborate.

Bitcoin, Ethereum, Cardano, and Dogecoin are cryptocurrencies. It's digital money used for payments and other uses.

Programs must interact with cryptocurrencies.

3. Blockchain:

Blockchain facilitates bitcoin transactions, investments, and earnings.

This technology governs Web3. It underpins the web3 environment.

Let us delve much deeper.

Blockchain is simple. However, the name expresses the meaning.

Blockchain is a chain of blocks.

Let's use an image if you don't understand.

The graphic above explains blockchain. Think Blockchain. The block stores related data.

Here's more.

4. Smart contracts

Programmers and developers must write programs. Smart contracts are these blockchain apps.

That’s reasonable.

Decentralized web3.0 requires immutable smart contracts or programs.

5. NFTs

Blockchain art is NFT. Non-Fungible Tokens.

Explaining Non-Fungible Token may help.

Two sorts of tokens:

1. These tokens are fungible, meaning they can be changed. Think of Bitcoin or cash. The token won't change if you sell one Bitcoin and acquire another.

2. Non-Fungible Token: Since these tokens cannot be exchanged, they are exclusive. For instance, music, painting, and so forth.

Right now, Companies and even individuals are currently developing worthless NFTs.

The concept of NFTs is much improved when properly handled.

6. Dapp

Decentralized apps are Dapps. Instagram, Twitter, and Medium apps in the same way that there is a lot of decentralized blockchain app.

Curve, Yearn Finance, OpenSea, Axie Infinity, etc. are dapps.

7. DAOs

DAOs are member-owned and governed.

Consider it a company with a core group of contributors.

8. DeFi

We all utilize centrally regulated financial services. We fund these banks.

If you have $10,000 in your bank account, the bank can invest it and retain the majority of the profits.

We only get a penny back. Some banks offer poor returns. To secure a loan, we must trust the bank, divulge our information, and fill out lots of paperwork.

DeFi was built for such issues.

Decentralized banks are uncontrolled. Staking, liquidity, yield farming, and more can earn you money.

Web3 beginners should start with these resources.

Wishing for Lasting Companies, Not Penny Stocks or Goodwill Write-Downs

Get me a NASCAR-style company-logoed cremation urn (notice to the executor of my will, theres gonna be a lot of weird requests). I believe in working on projects that would be on your tombstone. As the Homebrew logo is tattooed on my shoulder, expanding the portfolio to my posthumous commemoration is easy. But this isn't an IRR victory lap; it's a hope that the firms we worked for would last beyond my lifetime.

Venture investors too often take credit or distance themselves from startups based on circumstances. Successful companies tell stories of crucial introductions, strategy conversations, and other value. Defeats Even whether our term involves Board service or systematic ethical violations, I'm just a little investment, so there's not much I can do. Since I'm guilty, I'm tossing stones from within the glass home (although we try to own our decisions through the lifecycle).

Post-exit company trajectories are usually unconfounded. Off the cap table, no longer a shareholder (or a diminishing one as you sell off/distribute), eventually leaving the Board. You can cheer for the squad or forget about it, but you've freed the corporation and it's back to portfolio work.

As I look at the downward track of most SPACs and other tarnished IPOs from the last few years, I wonder how I would feel if those were my legacy. Is my job done? Yes. When investing in a business, the odds are against it surviving, let alone thriving and being able to find sunlight. SPAC sponsors, institutional buyers, retail investments. Free trade in an open market is their right. Risking and losing capital is the system working! But

We were lead or co-lead investors in our first three funds, but as additional VCs joined the company, we were pushed down the cap table. Voting your shares rarely matters; supporting the firm when they need it does. Being valuable, consistent, and helping the company improve builds trust with the founders.

I hope every startup we sponsor becomes a successful public company before, during, and after we benefit. My perspective of American capitalism. Well, a stock ticker has a lot of garbage, and I support all types of regulation simplification (in addition to being a person investor in the Long-Term Stock Exchange). Yet being owned by a large group of investors and making actual gains for them is great. Likewise does seeing someone you met when they were just starting out become a public company CEO without losing their voice, leadership, or beliefs.

I'm just thinking about what we can do from the start to realize value from our investments and build companies with bright futures. Maybe seed venture financing shouldn't impact those outcomes, but I'm not comfortable giving up that obligation.

Don't overcomplicate to-do lists. DWTS (Done, Waiting, Top 3, Soon) organizes your to-dos.

How Are You Going to Manage Everything?

Modern America is busy. Work involves meetings. Anytime, Slack communications arrive. Many software solutions offer a @-mention notification capability. Emails.

Work obligations continue. At home, there are friends, family, bills, chores, and fun things.

How are you going to keep track of it all? Enter the todo list. It’s been around forever. It’s likely to stay forever in some way, shape, or form.

Everybody has their own system. You probably modified something from middle school. Post-its? Maybe it’s an app? Maybe both, another system, or none.

I suggest a format that has worked for me in 15 years of professional and personal life.

Try it out and see if it works for you. If not, no worries. You do you! Hopefully though you can learn a thing or two, and I from you too.

It is merely a Google Doc, yes.

It's a giant list. One task per line. Indent subtasks on a new line. Add or move new tasks as needed.

I recommend using Google Docs. It's easy to use and flexible for structuring.

Prioritizing these tasks is key. I organize them using DWTS (Done, Waiting, Top 3, Soon). Chronologically is good because it implicitly provides both a priority (high, medium, low) and an ETA (now, soon, later).

Yes, I recognize the similarities to DWTS (Dancing With The Stars) TV Show. Although I'm not a fan, it's entertaining. The acronym is easy to remember and adds fun to something dull.

What each section contains

Done

All tasks' endpoint. Finish here. Don't worry about it again.

Waiting

You're blocked and can't continue. Blocked tasks usually need someone. Write Person Task so you know who's waiting.

Blocking tasks shouldn't last long. After a while, remind them kindly. If people don't help you out of kindness, they will if you're persistent.

Top 3

Mental focus areas. These can be short- to mid-term goals or recent accomplishments. 2 to 5 is a good number to stay focused.

Top 3 reminds us to prioritize. If they don't fit your Top 3 goals, delay them.

Every 1:1 at work is a project update. Another chance to list your top 3. You should know your Top 3 well and be able to discuss them confidently.

Soon

Here's your short-term to-do list. Rank them from highest to lowest.

I usually subdivide it with empty lines. First is what I have to do today, then week, then month. Subsections can be arranged however you like.

Inventories by Concept

Tasks that aren’t in your short or medium future go into the backlog. 
Eventually you’ll complete these tasks, assign them to someone else, or mark them as “wont’ do” (like done but in another sense).

Backlog tasks don't need to be organized chronologically because their timing and priority may change. Theme-organize them. When planning/strategic, you can choose themes to focus on, so future top 3 topics.

More Tips on Todos

Decide Upon a Morning Goal

Morning routines are universal. Coffee and Wordle. My to-do list is next. Two things:

• As needed, update the to-do list: based on the events of yesterday and any fresh priorities.

• Pick a few jobs to complete today: Pick a few goals that you know you can complete today. Push the remainder below and move them to the top of the Soon section. I typically select a few tasks I am confident I can complete along with one stretch task that might extend into tomorrow.

Finally. By setting and achieving small goals every day, you feel accomplished and make steady progress on medium and long-term goals.

Tech companies call this a daily standup. Everyone shares what they did yesterday, what they're doing today, and any blockers. The name comes from a tradition of holding meetings while standing up to keep them short. Even though it's virtual, everyone still wants a quick meeting.

Your team may or may not need daily standups. Make a daily review a habit with your coffee.

Review Backwards & Forwards on a regular basis

While you're updating your to-do list daily, take time to review it.

Review your Done list. Remember things you're proud of and things that could have gone better. Your Done list can be long. Archive it so your main to-do list isn't overwhelming.

Future-gaze. What you considered important may no longer be. Reorder tasks. Backlog grooming is a workplace term.

Backwards-and-forwards reviews aren't required often. Every 3-6 months is fine. They help you see the forest as often as the trees.

Final Remarks

Keep your list simple. Done, Waiting, Top 3, Soon. These are the necessary sections. If you like, add more subsections; otherwise, keep it simple.

I recommend a morning review. By having clear goals and an action-oriented attitude, you'll be successful.

Learn or earn

In 2020, I started software engineering. My base wage has progressed as follows:

Amazon (2020): $112,000

Microsoft (2021): $123,000

Google (2022): $169,000

I didn't major in math, but those jumps appear more than a 7% wage increase. Here's a deeper look at the three.

The Three Categories of Compensation

Most software engineering compensation packages at IT organizations follow this format.

Minimum Salary

Base salary is pre-tax income. Most organizations give a base pay. This is paid biweekly, twice monthly, or monthly.

Recruiting Bonus

Sign-On incentives are one-time rewards to new hires. Companies need an incentive to switch. If you leave early, you must pay back the whole cost or a pro-rated amount.

Equity

Equity is complex and requires its own post. A company will promise to give you a certain amount of company stock but when you get it depends on your offer. 25% per year for 4 years, then it's gone.

If a company gives you $100,000 and distributes 25% every year for 4 years, expect $25,000 worth of company stock in your stock brokerage on your 1 year work anniversary.

Performance Bonus

Tech offers may include yearly performance bonuses. Depends on performance and funding. I've only seen 0-20%.

Engineers' overall compensation usually includes:

Base Salary + Sign-On + (Total Equity)/4 + Average Performance Bonus

Amazon: (TC: 150k)

Base Pay System

Amazon pays Seattle employees monthly on the first work day. I'd rather have my money sooner than later, even if it saves processing and pay statements.

The company upped its base pay cap from $160,000 to $350,000 to compete with other tech companies.

Performance Bonus

Amazon has no performance bonus, so you can work as little or as much as you like and get paid the same. Amazon is savvy to avoid promising benefits it can't deliver.

Sign-On Bonus

Amazon gives two two-year sign-up bonuses. First-year workers could receive $20,000 and second-year workers $15,000. It's probably to make up for the company's strange equity structure.

If you leave during the first year, you'll owe the entire money and a prorated amount for the second year bonus.

Equity

Most organizations prefer a 25%, 25%, 25%, 25% equity structure. Amazon takes a different approach with end-heavy equity:

• the first year, 5%

• 15% after one year.

• 20% then every six months

We thought it was constructed this way to keep staff longer.

Microsoft (TC: 185k)

Base Pay System

Microsoft paid biweekly.

Gainful Performance

My offer letter suggested a 0%-20% performance bonus. Everyone will be satisfied with a 10% raise at year's end.

But misleading press where the budget for the bonus is doubled can upset some employees because they won't earn double their expected bonus. Still barely 10% for 2022 average.

Sign-On Bonus

Microsoft's sign-on bonus is a one-time payout. The contract can require 2-year employment. You must negotiate 1 year. It's pro-rated, so that's fair.

Equity

Microsoft is one of those companies that has standard 25% equity structure. Except if you’re a new graduate.

In that case it’ll be

• 25% six months later

• 25% each year following that

New grads will acquire equity in 3.5 years, not 4. I'm guessing it's to keep new grads around longer.

Google (TC: 300k)

Base Pay Structure

Google pays biweekly.

Performance Bonus

Google's offer letter specifies a 15% bonus. It's wonderful there's no cap, but I might still get 0%. A little more than Microsoft’s 10% and a lot more than Amazon’s 0%.

Sign-On Bonus

Google gave a 1-year sign-up incentive. If the contract is only 1 year, I can move without any extra obligations.

Not as fantastic as Amazon's sign-up bonuses, but the remainder of the package might compensate.

Equity

We covered Amazon's tail-heavy compensation structure, so Google's front-heavy equity structure may surprise you.

Annual structure breakdown

• 33% Year 1

• 33% Year 2

• 22% Year 3

• 12% Year 4

The goal is to get them to Google and keep them there.

Final Thoughts

This post hopefully helped you understand the 3 firms' compensation arrangements.

There's always more to discuss, such as refreshers, 401k benefits, and business discounts, but I hope this shows a distinction between these 3 firms.