A well known crypto newbie contact me about two crypto project he his currently holding, Mina Protocol and Fuel, the problem is Alameda and FTX are big investors of these two projects, he is asking if he should sell his bag and replace with other altcoin?
Is this a good reason to sell off your coins and replace with another that Alameda and FTX aren't involved? Pls drop your idea .
What will you do in this case?
Since the ftx fiasco, I think many investors will rightly pull out of any project connected to that company, it seem whatever they touch will end up having issues in the long run, I recently read that Do Kwon blaming ftx and Alameda for the down fall of ust and luna. It seems the authorities are looking into this recent development.
It is up to your friend to do what he feels right but from the look of things, that company already messed up it's reputation, I doubt it will be business as usual for them anymore.
Not only should we stay away from projects related to FTX and Alameda, but at this stage, we should stay away from all altcoins, including the top coins that people call safe, IMO. The crash of FTX isn't over yet and we still don't know who will be next, so stay away from altcoins, for the time being, focus on bitcoin, and we'll be safe. My advice to OP's friend is to sell all altcoins but don't try to buy other altcoins. Consider my suggestion just to hold bitcoins.
I agree, sometimes people get mad about altcoins receiving a bad reputation, but it is not really our fault, a great deal of them, and by that I mean up to 99% of them, are scams or simply useless projects, and when that is the case even if there are a few good altcoins out there the most simple solution is to give up on altcoin and concentrate on bitcoin, and if there are people out there which do not want to do that they are free to ignore our advice, but at least they should stay away from altcoins during a bear market as not only many altcoins disappear during this period, but the ones that survive drop in price faster than bitcoin.