Shitcoin Lender BlueBenx Enables Forced Hodl Mode

Today's YIYL (You Invest You Lose) takes us off to Latin America, has the contagion continues to spread. 2022 has been the year of centralised exchange and centralised lender capitulation, never have I seen so many companies go the way of Mt Gox in such a short space of time. We're seeing bankruptcy filings, bailouts, takeovers and it's just a complete shitshow.

When we look at the amount of money thrown into the shitcoin space and the caliber of people running these companies it shouldn't be a surprise that they fail.

On the list of failures in the last year, you can point to Celsius, BlockFi, Nuri, CoinFLEX, Vauld, and Voyager and now you can add another to the list BlueBenx.

A Brazilian crypto lending platform, has blocked all of its 22,000 users from withdrawing their funds and put them in forced hodl mode, simliar to many of these other shitcoin casinos. Instead of saying they are dealing with bad market conditions, BlueBenx cites an alleged hack that drained $32 million (or 160 million Brazilian real). While no details about the hack were made available, the company allegedly laid off most of its employees too.

Brazilians feeling the blues

The Brazilian crypto lender was clearly yolo'ing into something as it promised up to 66% returns for users investing in shitcoins via various in-house earning avenues. Now I doubt they were able to earn that return and it was either a subsidised marketing scheme that went wrong or they were leveraging up to the tits trying to take on as much risk as possible during the bull run.

Alternatively, it could have simply been ponzinomics at play, we won't know until they open up those books and we see what was going on under the hood.

Not your keys not your coins

Sadly yet another lesson for those who have not realised that self-custody is the killer app, every time you add your money or coins to an exchange you're not only giving up rights to that money, but you're doxing all the activities with that money. You give up ownership and privacy and that defeats the purpose of bitcoin.

I have come to realise that most people don't care about those things, they don't want things to change, they just want things to be exactly the same as long as they are fiat wealthy.

Hodling that idea, is only going to see holding a lot less of your wealth in the future as you hand it over to bad businesses with poor risk management.

I don't know how many times this lesson will have to be repeated but I do know a lot of wealth will be lost by people who don't bother to learn or respect the limitations of bitcoin and head back to tradeFI or into shitcoins.

Sources:

• cointelegraph.com
• pymnts.com

Have your say

What do you good people of HIVE think?

So have at it my Jessies! If you don't have something to comment, "I am a Jessie."

Let's connect

If you liked this post, sprinkle it with an upvote or esteem and if you don't already, consider following me @chekohler and subscribe to my fanbase

Earn Free bitcoin & shop	Earn Free Bitcoin & shop	Claim Free Bitcoin & Shop

Posted Using LeoFinance ^Beta