Built on the Solana blockchain, Fartcoin combines humor and cryptocurrency by tokenizing fart jokes and memes to build a playful, community-driven ecosystem.

Just when you think the innovative cryptocurrency world has run out of surprises, along comes a project that catches everyone off guard. One such unlikely superstar is Fartcoin. This 

 blockchain, has quickly gained attention for its quirky premise: tokenizing fart jokes and memes. But beneath the gastro-inspired humor lies a fast-growing community and a surprising market performance.

This article unpacks the Fartcoin phenomenon, and asks the question: Is it worth your investment — or is it simply hot air? 

Fartcoin is a meme coin built on the Solana blockchain that allows users to submit fart jokes and memes to earn tokens. It went viral for its humorous concept and community-driven engagement.

Fartcoin, like most meme coins, doesn’t claim to have intrinsic value or serious utility. Instead, it thrives on humor and community engagement. True to its irreverent premise — tokenizing farts — Fartcoin is all about creating a fun and lighthearted experience in the crypto space. it attempts to build an interactive, inclusive community centred on fart jokes and memes, in which creativity and laughter take the spotlight.

Fartcoin scintillates with features like the "Gas Fee," which playfully produces fart sounds during transactions, adding a hilarious twist to the crypto experience. It also encourages participation through meme submissions, rewarding users for their contributions and building a strong sense of community

Fartcoin was created as part of an experiment by Truth Terminal, an 

, to test the influence of artificial intelligence on cultural trends. This merry project takes a playful approach to cryptocurrency, relying on jests and memes to drive its value. The more people talk about and interact with Fartcoin, the more its value grows — thanks to its reflexive memetic strategy.

Fartcoin’s community plays a key role in its success. Users can earn tokens by submitting fart-themed jokes or memes, with the most popular contributions earning extra tokens and a chance to be featured in various media projects related to the coin.

To keep things fun and engaging, Fartcoin’s tweets and social media presence are powered by Truth Terminal, with posts that embrace meme culture and fun. These posts, crafted by AI and manually shared by the team behind the token, help keep the community entertained and actively involved.

Thanks to Solana's fast processing speeds and low transaction fees, Fartcoin transactions are both efficient and accessible to users, making it easy for everyone to join in on the fun.

FARTCOIN is the native token of the Fartcoin project. It’s primarily used for community engagement, speculative investment and as a means to participate in the Fartcoin ecosystem.

FARTCOIN has a fixed supply of 1 billion tokens, almost all of which are circulating. At launch, 20.1 million tokens were allocated to Truth Terminal, the AI behind the project. This allocation ensures that Truth Terminal plays a central role in the promotion and development of Fartcoin. The remaining tokens were distributed to early participants through community meme submissions and liquidity pool incentives on 

. This approach has helped to build a strong and engaged community from the start.

Fartcoin has taken the crypto world by surprise with its quirky humor and explosive growth. Launched in October 2024 as part of an AI experiment by Truth Terminal, Fartcoin quickly captured attention with its playful concept and savvy marketing.

In just two months, Fartcoin’s market cap soared past $1 billion, its price skyrocketing by an astonishing 500% in just 11 days and placing it firmly as one of the top-performing meme coins of the year. On Dec 20, 2024, it reached an all-time high of $1.27 — all while the broader crypto market struggled during a downturn. It then reached a new ATH of $1.45 on Jan 2, 2025.

Fartcoin’s rapid rise can be attributed to early backing from institutional players like the 

, which helped establish credibility and liquidity, drawing in more investors. A major boost came when Fartcoin was listed on Binance Futures, sparking fresh interest and driving prices even higher. Its whimsical narrative also struck a chord with investors looking for something different. In a market dominated by uncertainty, Fartcoin’s comedic appeal offers a refreshing and profitable diversion.

Looking to trade Fartcoin tokens? Bybit now offers the FARTCOINUSDT Perpetual contract for trading. To get started, you’ll first need to create a Bybit account, then fund it with cryptocurrency and navigate to the 

Fartcoin's meteoric rise and quirky appeal make it an intriguing choice for speculation. However, potential investors should exercise caution. Meme coins like Fartcoin are highly volatile and often lack intrinsic value, making them risky investments. While its community-driven model and unique features offer entertainment and engagement, Fartcoin’s value depends heavily upon its popularity and ongoing participation.

As with any cryptocurrency, users need to 

 and understand the risks involved before investing. Diversifying your portfolio and investing no more than you can afford to lose are essential steps toward safely navigating the volatile world of cryptocurrencies.

Fartcoin is a perfect example of how humor and community engagement can create a buzz in the cryptocurrency world. From its quirky concept to its impressive market performance, it’s captured the attention of investors and enthusiasts alike. However, its success hinges on its viral appeal, making it a high-risk, high-reward investment. Whether you're in it for the gassy laughs or the potential gains, always approach meme coins such as Fartcoin with caution and research them thoroughly. After all, even in crypto, not every joke pays off!

Intermediate

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Fartcoin (FARTCOIN): Breaking Wind & Records in the Crypto World

Jan 6, 2025: Our weekly Institutional Insights explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

Weekly Highlight — Markets Snap Five-Day Loss Streak 

Investors are now seizing the opportunity to buy the dip in U.S. stocks after a five-day decline that erased over $1 trillion in market value. Wall Street has broken its longest losing streak since April, with the Nasdaq-100 rebounding 1.7% and the S&P 500 rising 1.3% on Friday, January 3. These gains slightly offset the week's sell-off, which had continued into the new year following a tough December.

Despite concerns about slowing earnings growth among tech giants like the Magnificent Seven, traders remain optimistic, especially regarding AI leader NVIDIA Corporation. The market believes that, as long as retail investors keep investing in AI, the associated stock market boom is expected to persist. 

Stocks reached their session highs in the afternoon after Mike Johnson was reelected as speaker of the U.S. House of Representatives, indicating potential support for a business-friendly agenda. Meanwhile, bond yields rose, with the 10-year hitting 4.6% following comments from Richmond Fed President Tom Barkin about maintaining restrictive rates. U.S. manufacturing showed modest growth, with new orders at their highest since early last year, while investors assessed economic strength against the possibility of slower interest-rate cuts.

Weekly Crypto Highlight — AI Agent Spring Coming

Many investors are eagerly anticipating an Alt Season, a period when altcoins typically surge in value. However, current market dynamics suggest we may not see a widespread altcoin rally. The sheer number of tokens, combined with limited liquidity, has led to what's known as altcoin dispersion, making it crucial to select the right sectors and tokens.

, which are thriving even as the broader market declines. This nascent sector is experiencing rapid advancements, and its associated tokens face less pressure from venture capital unlocks. Many of its top protocols lack centralized exchange listings, indicating more buyers may enter the market.

Those investors who missed previous opportunities, such as the DeFi summer of 2020 and the Alt Layer 1 trade, now have another chance. Instead of targeting individual AI agents, the best risk/reward strategy lies in investing in infrastructure plays, which serve as the foundational tools for the sector.

The leading AI agent player is Virtuals Protocol, a platform for launching tokenized AI agents on the Base network. By purchasing tokens like Luna by Virtuals (LUNA) and VaderAI (VADER), users gain governance rights over specific agents, which allows them to both influence development and share in profits. 

Recently, daily protocol fee revenues dropped significantly in mid-December 2024 as activity slowed for the holidays. However, speculation around agent-associated tokens surged as the new year approached. Currently, Virtuals Protocol generates over $1 million in daily fees, though this is 50% less than figures for early December. Despite these challenges, the VIRTUAL token has more than doubled in value, reaching a market capitalization of $4.6 billion.

Other highlighted opportunities include Zerebro, which is pivoting to a full-stack framework for AI agents; ARC, with its Rust-based framework; and 

 (GRIFFAIN), a natural language on-chain search tool. These projects are well-positioned for future growth in the evolving landscape of AI technology.

 as we delve into leading AI agent tokens and the past week’s market movements. 

Advanced

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Weekly Institutional Insights: Market Snaps Five-Day Loss Streak; AI Agent Spring Coming

Our weekly crypto derivatives analytics report delves into macro events, the current state of crypto and trading signals from spot trading volume, and futures, options and perpetual contracts.

December's end-of-year options expiration brought an unexpected drop as realized volatility fell to the lowest levels of the month. Perpetual swap open interest remained stable, indicating these markets weren't heavily used for hedging against expired options, likely contributing to the muted volatility. 

While most expired open interest in Bitcoin (BTC) and Ethereum (ETH) hasn't been reinvested, the balance of calls and puts remains consistent. Notably, ETH options are pricing in higher implied volatility as compared to BTC, particularly for shorter expirations, leading to a flat term structure for ETH, while BTC is offering cheaper options exposure.

In the perpetual markets, low volatility and minimal spot movements have led funding rates for nearly all tokens to mirror broader market sentiment throughout the holiday season. On the options side, BTC's term structure is noticeably lower and steeper than ETH's, with realized volatility now dipping below implied volatility levels, highlighting an intriguing shift in market dynamics.

Please check out the report’s highlights.

Open Interest Solid Amid Year-End Options Expiration

Although open interest for both BTC and ETH perpetual swaps hasn’t returned to early December 2024 highs, it remained robust throughout the significant end-of-year options expiration event. This suggests that these markets weren’t heavily utilized to 

 of the expiring options contracts, likely contributing to the lack of volatility observed during this period. Instead, trading volumes have dipped noticeably during the winter holiday season, coinciding with a collapse in realized volatility back to December 2024’s lowest levels.

BTC Option Curve Remains Steep During Call-Put Parity

The expiration of December's end-of-year options didn’t trigger the anticipated surge in volatility; instead, realized volatility has plummeted to the lower end of its recent range. The implied volatility term structure remains steep compared to both its recent behavior and ETH's, with longer-dated implied volatility around 57%, and 1-week at-the-money options trading about five points lower. Much of the expired open interest hasn’t yet been rolled into new positions, maintaining a neutral balance between puts and calls. Consequently, BTC's options market positioning is relatively neutral, lacking the leverage it had at the start of December 2024.

Huge ETH Option Expiring Doesn’t Cause Volatility

A late December spike in realized volatility didn’t carry into the new year, with ETH’s spot price currently exhibiting volatility below that of short-tenor implied volatility. Interestingly, the implied volatility term structure has undergone a steepening and re-flattening over the past week, contrasting with BTC’s slightly steeper profile. This suggests that ETH’s options market is anticipating higher short-term volatility in spot price movements. 

Despite the significant expiration of options open interest at the end of December 2024, which didn’t lead to a rollover into later expirations, call options continue to dominate the market and have increased at the start of 2025.

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Bybit X Block Scholes Crypto Derivatives Analytics Report (Jan 2, 2025): BTC Options Continue to See Call-Put Parity, With Lower Short-Term Volatility Expected

Dive into FLock, a decentralized platform that revolutionizes the way AI models are developed, trained and deployed.

Artificial intelligence (AI) is poised to transform countless industries, but its development often raises questions about privacy, control and inclusivity. 

 is a unique decentralized platform that democratizes AI training, fine-tuning and inferencing. With its blockchain-powered infrastructure, FLock ensures transparency, security and community-driven decision-making, paving the way for AI models that align with established societal values. 

In this article, we’ll explore how FLock decentralizes AI training, its key features and its potential impact on developers, communities and users.

 platform that revolutionizes the way AI models are developed, trained and deployed. By leveraging blockchain technology and a novel approach called 

, FLock addresses critical issues in AI development, such as centralized control, lack of transparency and privacy concerns.

At its core, FLock’s mission is to democratize AI by enabling communities to participate directly in the creation and refinement of AI models. Through federated learning, FLock trains AI models across multiple decentralized devices or servers. This method ensures that data remains local, eliminating the need for raw data exchange while still enabling robust model training. By decentralizing the training process, FLock not only protects individual privacy, but also fosters a more inclusive ecosystem in which diverse contributors can collaborate.

What sets FLock apart is its integration of 

. This ensures that all contributions — whether data, compute power or feedback — are transparently recorded and fairly rewarded. Blockchain tech’s immutable ledger enhances trust among participants and safeguards the process against manipulation. Additionally, the platform’s on-chain incentive mechanisms encourage participation from a wide range of contributors, ensuring that rewards are distributed equitably.

Ultimately, FLock empowers communities to develop bespoke AI models tailored to their specific needs. By decentralizing the process and prioritizing transparency and collaboration, FLock breaks the monopoly of large corporations, creating an AI ecosystem that aligns with public ethics and societal values.

, an Oxford alumnus with a robust background in AI and blockchain technology. Sun, who serves as FLock's CEO, has an impressive career trajectory, having worked as the Director of AI for the Royal Bank of Canada and as an AI Research Fellow at Imperial College London. His vision for FLock stems from a deep understanding of both the technical and ethical challenges of AI development.

The founding team also includes other Oxford alumni, boasting over a decade of combined experience in AI research and the cryptocurrency industry. This team brings a collective blend of academic excellence and practical expertise that positions FLock to lead the decentralized AI movement.

FLock has successfully raised $11 million in funding across two rounds, reflecting strong investor confidence in its vision. In May 2024, FLock secured a $6 million seed round co-led by Lightspeed Faction and Tagus Capital, with additional backing from Digital Currency Group (DCG), Volt Capital, OKX Ventures and Inception Capital.

Later, in December 2024, FLock announced a $3 million successful funding round led by DCG and joined by prominent names like Animoca Brands, Fenbushi Capital, GnosisVC and GSR. These investments are being channelled into enhancing the platform’s testnet and federated learning client, accelerating FLock’s mission of enabling secure, collaborative AI development.

With this funding and over 1,500 nodes contributing from platforms like Numerai and Kaggle, FLock is rapidly scaling its impact on decentralized AI training.

FLock AI revolutionizes AI development through its decentralized training framework. This approach allows participants to contribute to AI model training without ever sharing their personal data. Instead, models are trained locally across devices using federated learning, which ensures that data remains with its owners while still enhancing the accuracy of the model overall. 

FLock’s reward system is designed to incentivize active participation. Contributors who provide data, computational power and/or feedback are compensated with FLOCK tokens, ensuring a fair distribution of rewards. 

FLock empowers its community through a robust governance framework. Decisions regarding AI model development, deployment and ethical considerations are driven by the community, ensuring alignment with established societal values. Through blockchain-based voting mechanisms, contributors can influence the direction of AI projects, fostering transparency and public accountability. 

FLock’s modular architecture allows contributors to participate in specific aspects of AI model development. Whether providing raw data or computational power or even refining algorithms, the platform enables a collaborative and scalable development process. 

At the core of FLock’s philosophy is its commitment to privacy and security. By leveraging blockchain technology, the platform ensures that no single entity controls the AI development process. Data remains local and protected by cryptographic measures, while the immutability of blockchain guarantees transparency in every transaction and model update. 

 begins with a blockchain and an AI layer.

The blockchain layer underpins FLock’s incentivization and security mechanisms.

The AI layer facilitates model training, refinement and deployment, leveraging both centralized and federated approaches.

Let’s have a look at the supply and demand for the FLOCK token.

FLock adopts a 1:2 ratio model between team/investors (33.3%) and community (66.7%), prioritizing community-driven growth and ecosystem expansion. The majority of tokens are allocated to incentivize user participation and long-term ecosystem success.

FLock aims to improve the future of AI development by decentralizing the training process and ensuring transparency, privacy and inclusivity. By leveraging blockchain and federated learning, FLock empowers communities to contribute to AI creation without compromising on privacy. Its innovative reward system and community-driven governance foster a fair and collaborative ecosystem. 

With significant backing and a growing network of contributors, FLock is positioning itself as a leader in decentralized AI, offering a more ethical and secure alternative to traditional AI development models. As it continues to scale, FLock is set to transform the way AI models are built and deployed.

 — and earn a share of a 10 million FLOCK prize pool. For more details, visit 

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FLock AI: Decentralized AI Training

Investing

Trading

Fearful of rising asset prices and defaulting bonds? Learn from the 2008 financial crisis so you can invest smartly for the road ahead.

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A recent liquidity crisis at the second-largest property developer in China has investors drawing parallels to the infamous 2008 financial crisis. This issues has raised investors’ concerns; that its effects may trickle down to the global economy. Evergrande, the infamous company, has fueled an economic spur in the country since 1996, but most of the growth sat atop unsustainable and ever-increasing debt. Today, the company has liabilities of

, the largest debt of any business worldwide. Moreover, its real estate properties have low occupancy rates, which is reminiscent of the 2008 financial crisis.

The Chinese government says they’ve got things under control. At the same time, strategists recommend that Beijing acts promptly because Evergrande’s decline is hurting market sentiment, even spreading to crypto by causing Bitcoin

In this guide, we discuss what caused the 2008 financial crisis and how savvy crypto investors can learn from the economic uncertainty in the market.

The 2008 financial crisis was mainly caused by the collapse of the U.S. housing bubble. Deregulation in the finance industry allowed banks to trade hedge funds with derivatives and bundle subprime mortgages, ultimately causing real estate assets’ values to plunge.

The roots of the Great Recession began to form in 2007. At that time, it was clear that the long-practiced binging on cheap credit would have imminent consequences. Preliminary events had already begun to expose cracks in the system, such as the collapse of two Bear Stearns hedge funds.

 in Britain was also going to ask the Bank of England for emergency funding. At the same time, BNP Paribas shocked investors by freezing $2.2 billion of funds under management.

However, these signs failed to prepare investors for what was to hit the next year. 2008 brought the worst financial crisis in about eighty years, engulfing the whole world.

The 2008 financial crisis cost ordinary people their life savings, homes and jobs — and sometimes all three. Today, many people wonder what caused the 2008 financial crisis. Realistically, there was more than one culprit, but if there’s a place to start, it’s mortgage-backed securities.

What Is a Mortgage and What Are Mortgage-Backed Securities?

A mortgage is a legal agreement between you and a lender that permits the lender to seize your property if you can’t repay the loan you’ve taken to buy it, along with any applicable interest. If you miss payments, the lender can take your home in a process called foreclosure.

 (MBS) are bonds secured by real estate and home loans. The pooling of several similar loans creates mortgage-backed securities. Essentially, investors can benefit from these securities without ever buying or selling a property. An investor putting their money in MBS is essentially obtaining the right to the value of this mortgage pool.

An investor buys an MBS because monthly payments from the borrowers go to that investor, rather than to the original lenders. If the borrowers are unable to pay, the investor may lose money.

Mortgage-backed securities exist because they let the bank sell its mortgages, which frees up more funds for the bank to lend to other borrowers. Additionally, it allows non-banking institutions to invest in the mortgage business.

How Did Mortgage-Backed Securities Lead to a Rise in Housing Prices?

Before mortgage-backed securities, only banks could offer long-term loans to borrowers, since they had enough money to wait for the loans to be repaid in 10 to 30 years.

With MBS, lenders were able to retrieve their cash instantly from the investors. As a result, the number of lenders rose. In fact, some started offering unrealistically low interest rates — in some cases not even bothering to verify the borrowers’ assets or salaries.

The lax lending policies meant banks were now facing tough competition. Therefore, they also had to make their qualification standards more flexible and lenient. And to make matters worse, mortgage-backed securities weren’t regulated.The U.S. federal government’s regulations only applied to banks, as they were required to ensure the protection of their depositors. Nevertheless, the lax lending standards meant more people were buying homes, resulting in a real estate boom.

Since lenders weren’t consistently confirming whether the borrowers could repay loans, many people ended up with unaffordable mortgages. As a result, subprime mortgages started piling up.

 is given to a high-risk borrower with a low credit rating. The interest rate on this type of mortgage is much higher than a standard rate in order to compensate for the higher risk.

Subprime mortgages are sometimes also adjustable-rate, which means the lender can increase the interest rate at any point in time.

The Role of Subprime Mortgages in the 2008 Financial Crisis

Subprime mortgages were a primary reason for the 2008 financial crisis, since many borrowers were issued these loans without any proof of income or down payment.

A borrower could come along and state their income to be $200,000 without any documentation to prove their claim, and they could still apply for a mortgage.

, (“no income, no job, and no assets”). Things began to go seriously wrong when lenders and the rest of the financial services industry began putting subprime loans in the same bundles as conventional mortgages issued to people with high credit scores.

” of collateralized mortgage obligations. These obligations have multiple security pools, with each pool having different priorities and maturities. Bear in mind that the loan repayments for the first three years of any subprime mortgage have a low interest rate. Thus, the banks pooled these payments with the low-interest payments of regular mortgages.

Then, they sold these bundles to investors.

The drop in housing prices in 2006 had already started creating problems. Unfortunately, the decline came during the third-, fourth- and fifth-year mortgage repayments, when many borrowers started to struggle with the sudden spike in interest rates.

A drop in the price of homes meant that the value of borrowers’ properties was less than their mortgage balance. Therefore, they couldn’t sell their homes. On the other hand, investors in mortgage-backed securities realized that borrowers were starting to default, pushing them into foreclosure, so investors tried to get insurance.

At this point, American Investment Group (AIG), the issuer of this insurance, nearly declared bankruptcy, partially contributing to the notorious 2008 financial crisis.

What Was the Chain of Events that Led to the 2008 Financial Crisis?

To fully understand what caused the 2008 financial crisis, it’s essential to look chronologically at the events leading up to it.

Home Buyers Take up Loose Credit Lines to Finance Mortgages

The Federal Reserve wanted to boost the economy and make more money available for consumers and businesses. As they say, the road to Hell is paved with good intentions.

Due to low lending rates, even people with poor credit scores could get mortgages to buy homes. Therefore, they took loose credit lines and financed mortgages. On the flip side, lenders failed to put stringent qualifying requirements in place because they were selling the loans in bundles to investors.

In keeping up with the competition, banks also dropped their standards, offering lowered interest rates. The Federal Reserve did raise the rates later, but it didn’t do much to alleviate the situation.

As a result, homeownership spiked to saturation.

Subprime mortgages, as discussed earlier, have high interest rates. Borrowers who were already subprime struggled to repay their loans in the third through fifth years of the repayment period.

Boom in Supply of Houses Causes Home Prices to Plunge

Problems had already started surfacing way before 2008. In 2004, homeownership in the U.S. had risen to

However, prices of homes started falling in 2006. Americans suffered widespread hardships during this time as their homes had less worth than the amount they’d paid for them. Because of this, there was no way for them to sell their homes.

Subprime Lenders and Financial Institutions Declare Bankruptcy

By 2007, subprime lenders started declaring bankruptcy. Twenty-five lenders had gone under by March of that year.

 filed for bankruptcy in April and laid off 50% of its workers. Soon after, BNP Paribas, the largest bank in France, also announced a loss worth billions of dollars, while American Home Mortgage Investment also declared bankruptcy.

Investors Lose Their Money from Financial Instruments: CDOs, CDSs and Mortgage-Backed Securities

As borrowers defaulted on their payments, investors began losing money from financial instruments, such as MBS. Likewise, investors also sustained losses from collateralized debt obligations.

Lehman Brothers Holdings suffered the most significant blow during the 2008 financial crisis: it owed $600 billion, of which credit default swaps covered $400 billion. In credit default swaps, buyers shift the financial risk to an insurance company and make periodic payments in exchange.

Think of it as an insurance policy, except it’s for buyers who predict that they may wind up in a financial pickle that could affect their investments in the future.

Credit default swaps became popular soon after their invention. By 2007, they were valued at

. However, the global financial crisis hit CDSs hard, dropping the value to

 in just two years following the Great Recession.

Lehman Brothers faced a substantial burden as their insurer, AIG, didn’t have sufficient funds to clear Lehman Brothers’ debt. Therefore, the Federal Reserve had to step in to bail out Lehman Brothers.

Huge Banks Declare Bankruptcy, Causing Liquidation of Assets and the Stock Market Plunge

The world became aware of the initiation of a global financial crisis when major banks started declaring bankruptcy. As a result, the stock market plunged.

 that failed during the financial crisis of 2008:

The most notable bank to collapse during the global financial crisis of 2008 was Bear Stearns, an investment bank in New York City. Ultimately, JPMorgan Chase & Co. bought Bear Stearns for just

Federal Reserve Steps in to Make Emergency Loans to Banks and Salvage the Economy

The primary reason many other financial giants in the country didn’t fail was that the Federal Reserve intervened, pumping taxpayers’ money into the economy. Here are a few steps the government took:

 was introduced to mollify the financial crisis in the country. U.S. President George W. Bush signed TARP in 2008, allowing the Department of the Treasury to put money into the market by purchasing equity and assets.

TARP was designed to give consumers debt relief and stabilize the overall economy. Initially, TARP was authorized to inject

 into the failing market. However, the amount was later lowered to $475 billion after the signing of the Dodd-Frank Act.

Dodd–Frank Wall Street Reform and Consumer Protection Act

President Obama signed the Dodd-Frank Act

 to tackle the aftereffects of the financial crisis of 2008. The law put in place regulations to prevent the predatory behavior of lenders and mortgage companies. Here are some of its other

, also known as the bank bailout, was passed in 2008. Per this law, the $700 billion 

 was created to buy toxic assets from banks.

The lowered interest rates before the financial crisis were the only silver lining from the whole ordeal. Americans suffered heavily as a result of the crisis, with

Also, as the housing market plummeted, Americans lost a whopping

, vaporizing many of their retirement accounts. On a global scale, there was a drop of 4% in economic growth.

Overall, millions of Americans lost their jobs due to layoffs by bankrupt companies. Meanwhile, after defaulting on payments, subprime borrowers lost their homes.

What Can Crypto Investors Learn From the 2008 Financial Crisis?

The financial crisis of 2008 certainly put a lot of Americans through financial ordeals, but it also offered lessons and identified loopholes in economic policies. Here are some things crypto investors can learn from it.

As a crypto investor, be wary of crashes and 

. We live in a world of meme coins and influential figures swaying the crypto market with their tweets. Therefore, you should have a non-sensationalist approach to crypto investing, especially when it comes to coins that seem to have rallied too quickly.

Currently, there are thousands of cryptocurrencies, although not all of them are widely known since they may not have made it to price monitoring sites. Some of these currencies are in the process of seeking their niche in a saturated marketplace.

However, others are just on the hunt for unsuspecting investors — whom they can prey on to make a quick buck. Thus, 

Start by looking at the crypto business model. You can read the company’s white paper and judge whether there’s a scope for scalability or if the company is on its way toward expansion and development in the future.

Next, look at the team. Do a Google image search and check to see if the people mentioned even exist, or if their pictures have been taken from another website. Some developers even put fabricated team members on their white paper to make the project seem legit.

Finally, look at the company’s initial coin offering, transparency, partnerships and profits.

The blind trust of investors in credit rating agencies was one of the catalysts of the financial crisis of 2008. 

. Do your own research, rather than blindly following an online article written by someone who may simply be trying to sensationalize the content as clickbait.

Identify Promising Crypto Projects to HODL

Here’s something to etch in your mind: the bear market will not last forever.

Volatility is inevitable in the crypto market, so don’t let it cloud your judgment if you want to HODL a promising project.

After the financial crisis of 2008, internet stocks plunged. People began to regard everything containing a “dot-com” as an ill-considered, immature business strategy. However, a decade later, some of the same startups that came into existence during that bubble are ruling cyberspace: some of them include Google and Amazon.

Apply the same to cryptocurrency, and don’t let a price drop discourage you from holding projects with inherent potential. If you’ve done your research and strongly believe in the growth potential of a token, HODL on.

Be Wary of Projects that Are “Too Big to Fail”

Although the signs of an upcoming financial crisis had always been there, many investors simply didn’t believe that certain financial institutions could ever fail, due to their sheer size.

However, we all suffered the consequences of this error in judgment as some of the biggest companies and banks filed for bankruptcy in 2008. The same applies to cryptocurrency. Don’t fall prey to the idea that some tokens are simply too big to fail.

If you nonetheless choose to adhere to this ideology, you’re likely to take excessive risks that can result in a lot of monetary loss.

Instead of investing everything in a single token, diversify your portfolio. This ensures that all your eggs aren’t in the same basket, so that even when a crypto calamity strikes, your whole portfolio isn’t wiped out.

: keep a manual record of your transactions, or use a

 to manage your diversification. Some trackers allow you to link them to personal wallets, making the process even more streamlined.

, value assets, payment coins, smart contracts, 

Alternatively, it’s possible to diversify your crypto portfolio by industry or geography. The major benefit of the latter is that your investments aren’t affected by regulatory uncertainties in any given country.

As unfortunate as it was, the financial crisis of 2008 taught us many lessons and led to the creation of policies that prevent a similar economic catastrophe from befalling the U.S. in the future.

What Caused the 2008 Financial Crisis: Crypto Investor Takeaways

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