Hong Kong's Securities and Futures Commission (SFC) has approved a new Ethereum ETF with staking capabilities, allowing institutional investors to earn staking rewards.

Daily top performer — Pyth Network (PYTH)

The S&P 500 dropped 1.5% to 5,282.70 this week, down 5.9% in April and 10% year-to-date, led by tech losses. Real estate and energy outperformed, while political pressure on Fed Chair Powell and inflation concerns weighed on sentiment. Gold dipped 0.6% to $3,319 after a record high, as Powell’s stagflation warning tempered its rally. Despite the pullback, the uptrend remains intact. The Coindesk Indices, which tracks the broader crypto market, are up by 0.77%, with Bitcoin and Ether rising 0.64% and 0.72%, respectively, over the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is PYTH, up 10.1%, following the launch of Pyth Entropy for secure on-chain random number generation by Soneium.

Pyth Network (PYTH),  is a blockchain oracle system that delivers real-time crypto price data to blockchains, enabling smart contracts to react to market changes. Soneium 

 Pyth Entropy, a tool for securely generating random numbers on-chain. Two apps, HandsNFT AI and 2p2e, are already utilizing Pyth Entropy to create unpredictable and engaging experiences.

Check out the latest prices, charts, and data of 

Hong Kong's Securities and Futures Commission (SFC) has approved a new Ethereum ETF with staking capabilities, allowing institutional investors to earn staking rewards. This approval follows recent changes to local laws, with China Asset Management (ChinaAMC) partnering with OSL Digital Securities to launch the ETF by May 15. The ETF will offer exposure to Ethereum staking, transforming it from a passive investment into an active participant in the Ethereum network. The staking process is powered by Kiln, with OSL providing custody and insurance services. The rewards will contribute to the ETF's net asset value, benefiting shareholders.

Yesterday, Bitcoin spot ETFs saw $25.9M in inflows, all from non-GBTC funds, while GBTC recorded no flow.

" and a points campaign called Drops, where users can earn points—potentially leading to an airdrop—by engaging with Linera content on X. To join, sign up on 

, complete tasks like joining Discord and interacting on X, then enter the campaign. Keep engaging to earn more points, but avoid spamming.

Beginner

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Hong Kong approves Ethereum ETF with staking rewards, boosting institutional participation

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.

US president Donald Trump’s tariff policies are influencing both crypto and US equities. Last week, BTC and the S&P 500 rallied due to a 90-day pause in reciprocal tariffs (excluding China). Equities are slightly below their April 9 highs, while BTC is holding above $83K. Its implied volatility term structure has normalized, and the volatility skew has improved from last week’s bias toward out-of-the-money puts, though it hasn't fully shifted toward calls.

Please check out the report’s highlights.

Tariff pause briefly brings back trading volume

Since our last report, open interest surged on Apr 9, 2025, as crypto spot prices rose after President Trump’s temporary tariff pause, accompanied by a nearly $10B increase in trade volumes. However, trade volumes have since returned to mid-March levels, and open interest has declined from the April 9 highs. The initial price spike indicates the tariff pause surprised the markets, but the subsequent pullback reflects concerns over remaining tariffs.

After being inverted for much of April due to trade policy shocks and macro headwinds, BTC’s term structure has disinverted, with front-end volatility dropping significantly this week. Call and put volumes have been balanced, with calls slightly exceeding puts most days. Apr 9, 2025, reflected mixed market sentiment, as both call and put volumes rose, but puts were higher overall. Open interest remains greater in calls, and has increased slightly since last week, reaching its highest level for the month (more than double from the beginning of April).

Despite a rally on Apr 9, 2025 that brought ETH close to $1.7K, traders sought downside protection, leading to higher volumes in put contracts as compared to calls. Since then, ETHUSDT options volumes have declined, but open interest remains strongly weighted toward calls with later expirations, which have increased since last week. After being inverted for much of April, ETH’s term structure of volatility has flattened, with volatility compressing around the 70% mark across tenors.

Advanced

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Bybit X Block Scholes crypto derivatives analytics report (Apr 16, 2025): Bitcoin put bias has moderated, but not yet shifted to calls

KiloEx (KILO) is a user-friendly DEX for perpetuals trading, offering high leverage, rewards, LSTfi integration and a robust multi-chain ecosystem.

 trading is one of the most lucrative areas for cryptocurrency enthusiasts if you know how to navigate the sometimes complex world of these contracts. Unlike standard futures, perpetual futures contracts have no expiration date, allowing traders to hold onto their positions as long as they prefer. You only exit a crypto perpetual (or “perp”) contract when you feel it’s the best time to execute your long or short trade. The lack of an expiration period makes these contracts attractive for traders.

Unfortunately, many crypto perpetual contract trading platforms are far from user-friendly. It seems like many perpetual crypto exchanges assume that only professional traders dabble in these contracts, and along with that assumption goes a second one — that these pros can navigate even the most complex user interfaces. As a result, finding a user-friendly perps platform is a challenge in the world of crypto trading.

 (DEX) that aims to change the status quo by providing a user-friendly environment for traders. Its platform also offers high leverage ratios, integration into the wider liquid staking token finance (LSTfi) ecosystem and generous reward programs for referrers and affiliates.

Thanks to its numerous benefits, this DEX caters to the needs of traders at all levels of expertise who are interested in crypto perpetuals. Operational since mid-2023, KiloEx launched its native token, KILO, in March 2025 to further enhance its platform's reward, staking and governance mechanisms.

 (BNB) that specializes in crypto perpetual futures trading.

 The platform prides itself on offering a user-friendly interface, high 

 ratios of up to 100x, multi-token vaults with generous APYs and a number of reward programs for referrers and affiliates.

Co-founded by Joey Ni (CEO) and Charles Gong (COO), KiloEx was originally launched on BNB Chain's mainnet in June 2023. As of mid-April 2025, the platform has additionally expanded its service coverage to five 

 (B2). This coverage allows KiloEx to access the ecosystems of three leading blockchain platforms — 

Manta, Base and Taiko are Ethereum-focused Layer 2 solutions, while opBNB is an efficient and low-cost optimistic rollup for the BNB Chain, while B

 is a platform linked to Bitcoin that acts as a major Bitcoin DeFi (BTCFi) enabler.

Because it’s a BNB-native platform, KiloEx's industry footprint is most notable within this blockchain's broader ecosystem. In fact, as Apr 17, 2025, KiloEx is the top DEX on the opBNB network by 

Using Layer 2 chains allows KiloEx to offer its users fast and low-cost transactions, which isn't always possible on a typical Layer 1 network. It's true that BNB Chain, the primary Layer 1 used by KiloEx, generally has much lower gas fees than Ethereum, the industry's leading 

 chain that’s notorious for its exorbitant costs. However, KiloEx's partner Layer 2 networks help drive costs and transaction times even lower. BNB Chain's current average gas fee is slightly over $0.10, while the opBNB Layer 2 rollup's comparable fee is only about $0.005.

In 2024, the platform introduced one of its most innovative features — the 

, which allows liquidity providers to stake multiple assets to earn high yields. That same year, KiloEx significantly expanded its partnership network, becoming an active player in the LSTFi ecosystem. LSTFi is a new stream within the DeFi industry that allows you to use 

 (LSTs) on various protocols for additional yield.

Having solidified its market presence in 2024, the project launched its native token, KILO, in March 2025. However, in mid-April 2025, KiloEx 

 and halted trading on April 15 as a risk management measure, pending investigation of the damage.

The Hybrid Vault is among the most innovative features offered by KiloEx. Essentially, it acts similarly to liquidity pools on other exchanges. Liquidity providers can contribute their crypto funds to the vault to support trading activity on the DEX and earn interest on their contributions, based on the fees earned by the protocol.

You can contribute a mix of coins to a KiloEx vault. Supported assets include 

Depending upon trading activity and the mix of coins contributed, you can earn APYs as high as 30%, making KiloEx one of the most lucrative choices for liquidity providers in this niche.

KiloEx uses a health factor calculation for this type of vault to keep your funds and the entire ecosystem safe. Based on the health factor score of your contribution to the vault, your funds could be liquidated if their value drops dangerously low.

Discounts are also offered for fixed-term deposits for established assets, such as USDT and USDC. Withdrawals for the fixed deposits are processed upon maturity, while all other withdrawals are processed within one to three "epochs," with each epoch on the platform lasting about three days. Thus, depending upon your contributed funds, you’ll wait anywhere from three to nine days to receive your crypto back.

The KiloEx platform also runs a generous referral program under which you can earn rewards for referring your friends to the platform. The amount you earn depends upon the trading volumes generated by the people whom you’ve referred. Additionally, your referees to the DEX can also benefit from fee rebates, again depending upon the volume of trade they generate.

There’s a tiered system, comprising nine levels, based on which you and your friends earn commissions and rebates. Under this system, even those referred traders whose monthly volume is at the lowest level (below $5,000) can still benefit from 5% rebates, while you also earn a 10% commission.

The table below shows the structure of this referral system with percentages for commission and rebates based on monthly trading volumes.

KiloEx offers an affiliate program for key opinion leaders (KOLs) with a certain level of social media following and influence in the crypto market. KOLs may apply to join the program by filling out an application, which is then considered by the project team within 48 hours.

To qualify for affiliate status, a KOL must have: 

Approved affiliates are provided a link to the platform, and are encouraged to invite their followers to trade on the KiloEx. If they invite at least five followers who trade at sufficient levels, the affiliates can start earning their commission. KOLs can earn up to 55% commission, depending upon the referred followers' trading activity.

KiloEx’s native utility token, KILO, is a 

 asset launched on BNB Chain. It’s used on the platform for governance, fee discounts on trades, rewards via 

, liquidity provision incentives and staking.

KILO is a supply-capped asset, with a maximum and total supply of 1 billion. The token’s supply allocation shares are shown in the chart below.

xKILO is an escrowed version of the KILO token. You can convert KILO to xKILO at a fixed rate of 1:1. The primary utility of xKILO is to provide boosted liquidity provision, which makes it possible to receive staking rewards. By locking xKILO on the platform, you can access special discounts and other benefits reserved for VIP-level users. Holding xKILO also grants you governance power to vote and influence the platform's future direction.

Unlike KILO, xKILO is nontransferable and isn’t tradable on the secondary market. The only ways to obtain xKILO are either to buy it with KILO or receive it via airdrops.

Platform users can earn points to qualify for KILO airdrops. Typically, you accumulate points by trading, depositing funds, referring others to the DEX, checking in to the platform and completing other specified eligible activities.

The project’s initial airdrop, Genesis Season, had an eligibility snapshot taken back in July 2024. Under the currently running airdrop campaign, Pioneer Season, users can earn points to receive KILO tokens for 180 days past the token generation event (TGE) in late March 2025 (i.e., until late September 2025).

Additionally, you can earn KILO tokens on Bybit simply by participating in the 

 event and holding BNB in your account. Every day at various random times, Bybit will take snapshots of your BNB holdings in your Funding and Unified Trading Accounts to calculate the number of KILO tokens you’re eligible for. The campaign will run through Apr 25, 2025, 11:59PM UTC, and you’ll have your share of KILO airdropped seven days after this date.

 market as a swap pair with USDT. If you don't have a Bybit account, you can easily 

, and access opportunities across hundreds of trading pairs and crypto products on the exchange's Spot and Derivatives markets.

As of Apr 17, 2025, the KILO token is trading at $0.039, which is 76.2% lower than its ATH of $0.1648 on Mar 27, 2025, and 17.3% higher than its ATL of $0.03344 on Apr 12, 2025.

Long-term price forecasts for KILO are mostly bullish. CoinCodex 

 at $0.0387 in 2027 and then rise to $0.135 in 2030 while PricePredictions 

When it comes to perpetuals trading, both traditional 

 (CEXs) and DEXs have often struggled to offer an intuitive trading experience. In contrast, KiloEx has made user-friendliness a cornerstone of its operations. With KiloEx, you can enjoy a streamlined trading process, access market trends info for thorough research, get an overview of the cryptocurrency market and conduct other activities via an interface that’s designed for anyone, irrespective of their familiarity with decentralized trading.

The platform also boasts a diverse range of other benefits not easily found in the world of perpetuals-based cryptocurrency trading — generous leveraged trading options, trading fee discounts, lightning-fast trades, low trading fees and an innovative Hybrid Vault system. Many of these benefits are thanks to KiloEx's collaboration with several Layer 2 decentralized platforms, which provide the technical infrastructure to enable low costs and fast order processing.

If you’re a crypto perpetuals enthusiast, KiloEx is definitely a platform to peruse.

Intermediate

KiloEx.png

KiloEx (KILO): More than a DEX — a rewarding ecosystem

In this article, Bybit Learn breaks down how the RFC meme coin was launched by the 'ifindretard' community, what’s driving its popularity and how to trade the RFC meme coin on Bybit.  

RFC quickly became one of the most talked-about and actively traded meme coins in early April 2025. In this article, we’ll break down how the token started, what’s driving its popularity and show you how to trade RFC on Bybit.  

Meme coins have always relied on humor to capture a wide audience and RFC is no different. The coin is inspired by the 

 X account that posts right-leaning, political and social posts on the platform. The account quickly became popular and gained over 718,000 followers as of mid-April 2025. 

 the launch of RFC, a Solana-based meme coin with a core mission of becoming the definitive meme coin for their community. The project aims to counter the prevalence of rug pulls and scams and create a token that is fair and community-centric.

The RFC token was launched on Mar 24, 2025, on the 

 platform. Within a few hours of its launch, the token graduated from the bonding curve and was placed in the liquidity pool. The initial post from the @ifindretards account is likely the major cause of the parabolic rise in the price of the token on the pump.fun platform. 

In the following days, the popularity of RFC experienced a significant surge, largely fueled by an enthusiastic community that rallied around the project. The coin’s 

 on Solana and its allocation of 96% of the supply to the public attracted a lot of attention from the meme coin community. Such community-centric characteristics quickly boosted the coin’s profile. According to 

, over 216 KOLs have mentioned the coin, with 124 being bullish and only five being bearish. This positive momentum was soon reflected in the price surge of RFC.

Following the graduation from the bonding curve, the price momentum continued and the coin reached a peak market cap of around $8 million, but quickly retraced to $1.2 million the next day. Over the next few days, the coin consolidated in the $1 million to $5 million range. 

On Mar 31, 2025, the coin broke out of this range and witnessed a 2-week staggering rally that saw the market cap rise as high as $138 million on Apr 14, 2025. This is a 25x increase from the first day’s close of $5.5 million. The coin has since retraced slightly, and as of Apr 15, it’s currently trading at a valuation of around $91 million market cap. 

The total supply of RFC is fixed at 1 billion tokens. The distribution of these tokens is heavily weighted towards the public, with 96% allocated for a public fair launch. Notably, only 4% of the total supply was allocated to the developer wallet, and the project explicitly states that there were no airdrops or presales.

If you’re interested in riding the RFC wave, you can go long or short on the token with up to 20x leverage on Bybit through its 

 RFCUSDT perpetual contract. Whether you're bullish or bearish, you can dive into the action and start trading the 

Retard Finder Coin RFC.png

RFC: Trending meme coin with a strong community

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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