The market crashed, but legendary short seller GCR encourages everyone to "not give up."
Others make money and disturb the mind; taking profits is what truly matters.Written by: Deep Tide TechFlow
Before the halving, the market experienced a sudden and unexpected crash.
Bitcoin once dropped to the $60,000 mark, while altcoins suffered even greater losses. Many people lamented once again that a day in the crypto world is like a year in the real world, and short-term feelings of frustration and disappointment began to brew.
Long positions and spot traders suffered both actual and nominal losses, and logically, this should be a time when short sellers are secretly pleased.
However, the "big short" in the crypto circle, the legendary trader GCR, posted on social media to warm every injured retail investor with encouraging words:
"**If you have been marginalized, this is a great opportunity to ** increase your position in the tokens you believe in; **if you are already fully invested, then stick with it, hold your spot position and do not surrender; someone once said that liquidation is the forced transfer of wealth from traders who need ** leverage to wealthy spot buyers."**
GSR also stated that he had long "retired" from social media, and the purpose of his post was not to see his brothers eliminated in the future when things still look bright, showing his concern for retail investors.
Clearly, the retail investors who were hit hard by the crash generally gained a recharge of faith and emotional value from this. GCR's post has received over 40,000 likes on Twitter and has spread widely.
At the same time, many new retail investors expressed confusion over the popularity of this post, with more and more inquiries asking "Who is GCR?"
The consensus in the crypto circle is quite interesting; not every motivational speech is well-received. Retail investors are more inclined to believe in the motivational words of legendary figures who have sharp market judgments and have made significant profits.
If you are also a newcomer unfamiliar with GCR, here is a brief introduction.
The Big Short Who Went Against the Public, Rising to Fame in One Battle
GCR is one of the most famous traders in cryptocurrency. He is known by his alias "Gigantic-Cassocked-Rebirth" from the now-defunct exchange ++FTX++, recognized for his verified top trading performance, many successful predictions, and clever writing, making him well-known on crypto Twitter.
From 2021 to 2022, he frequently appeared on the top trader leaderboard of FTX, outperforming many other market participants and becoming one of the highest profit and loss traders on the exchange.
Although his identity remains unknown, he claims to have built his wealth almost from scratch solely through trading.
Looking back at GCR's experiences over the past three years, you will find that his insights into the market are extraordinary.
In the second half of 2021, GCR predicted a bear market and began to trade against the trend, opposing mainstream sentiment while the public was optimistic, firmly shorting altcoins.
In July, GCR predicted in a Telegram message:
"The local bottom will be around 20k… The macro/stocks will peak in 2022, and most altcoins will reach -95% or -99%."
During the crypto frenzy of 2021, with chaos and air tokens rampant, GCR's position was not complicated; it was simply contrary to the "general market narrative."
What truly made GCR famous was his bet against the collapse of LUNA.
On March 14, 2022, GCR publicly wagered $10 million against Luna's founder Do Kwon (who had not yet been imprisoned), believing that Luna's price would fall below its current price within a year, and took action to short it.
Do Kwon indeed participated in the bet, with the wager funds held in escrow by another big player, Cobie.
As we all know, UST depegged, LUNA entered a death spiral, and the air stablecoin ultimately fell into the abyss; two months later, GCR revealed that the bet had yielded a profit of $2.3 million.
Winning a bet once might be luck, but consecutive successes certainly contain profound logic.
At the end of 2022, GCR issued a warning: As the bear market of 2022 progresses, the number of hackers and scams from bad actors and project teams will increase… Therefore, he would firmly short some tokens during the bear market.
Then in November, the shocking FTX bankruptcy occurred, plunging the crypto world into a deep bear market; and SBF and his associates indeed engaged in fraud.
Predictions came true, and the legend of the big short trader was born.
GCR's Top Ten Crypto Investment Tips
After the collapse of FTX, GCR may have earned enough to retire, permanently stopping posts on his @GiganticRebirth account.
His alternative account @GCRClassic provides fewer personal trading updates and focuses more on trading methodologies and insights.
Thus, when GCR encourages "not to surrender" in the face of the crypto market crash today, people are more inclined to believe and absorb the emotional value within.
After all, when a trading veteran who has weathered storms advises you not to give up, it may indeed mean that the bear market has not yet arrived.
At the same time, Twitter user @0x_Lens summarized GCR's ten core crypto investment tips and insights over the years, which we have compiled and shared.
- Be a Holder or a Trader?
I continue to hold a large position in spot BTC + ETH because I believe we hit the bottom in November and remain optimistic about the future; the goal is to reach 10k ETH by 2030.
For 90% of people, being a Holder is actually a better choice.
Note that this advice is only relevant to those Degen traders who rotate narratives in altcoins.
- The Biggest Benefit of Memes is "Never Deliver"
Ironically, for $DOGE, the most optimistic path is that Twitter never truly integrates it into anything. This will be the subject of Musk's teasing, hinting, mocking, and joking, as long as there has been an overall plan for years, allowing people's imaginations to run wild. We call it Hoskinson; never deliver.
- The Truth of Crypto News is Not Important, What Matters is the Duration of Impact
When news affects prices, market participants often focus on whether it is true.
Many times, the truth of the headline is not important.
The market's reaction to the news and its duration is far more instructive.
- Early Fast, Late Slow
We observe the general trading principle when meme tokens rise:
During the altcoin cycle, you should consider risk more seriously when the trend first reverses and gradually start to protect capital over time.
People fail because they do the exact opposite; they slow down early in their investments and become greedier over time, gradually going all-in.
- Bet on Ponzi When the Environment is Good
For ordinary people, the cost of flying to Macau or Las Vegas to gamble is too high.
When we are making money easily and the macroeconomic environment is favorable, decentralized casinos and/or decentralized Ponzi schemes are always the fastest horses.
- The Intrinsic Logic of Speculating on New Coins Rather Than Old Ones
New coins: full of hope, lacking holders, and the team is still not wealthy, thus they have the motivation to hype.
- Consider Profitability
Try to imagine a Ponzi scheme as a professional boxer fighting for a bonus rather than a token; in a boxing match, the winner gets the prize, while the loser gets nothing.
But people often make decisions like this: when an investment performs well, they sell it (cut their winners), and when another investment performs poorly, they continue to invest (add to their losers), rather than seeking professional help to deal with the emotional issues that may arise from financial losses.
- Others Making Money Disturbs the Mind; Taking Profits is Real
I previously shared some advice, and some people made a lot of money from it, then you received news of others making big profits.
However, wealth only counts when it is truly realized.
When trading volume exceeds market capitalization, it often indicates that the price increase has reached its final stage.
- The Worst Token Design and the Best Market Performance Are Not Contradictory
Some of the best-performing tokens will be those with the worst tokenomics, coming from the most predatory teams.
Many teams that launched at the peak of the bear market have been anxiously waiting for more favorable conditions to deploy their tricks and engage in market manipulation.
- The Lower the Price, the More Aggressive the Trading
No matter how many times people have seen it, they still underestimate the "low unit bias effect" on retail investors.
(Note: Low unit bias refers to the tendency for people to believe that stocks or currencies with lower unit prices are more valuable because they can buy more "units," even though the actual value may be average.)
This is one of the most attractive aspects of the cryptocurrency world.
Think about it, why would a sane person rush to buy 100 coins at a higher unit price? They could have 100,000 other coins at a lower unit price.
In conclusion, while the success of top traders may be hard to replicate, their perspectives can guide everyone to navigate the crypto world more cautiously.
