This is a call to action for all Bitcoin owners: whether you're a Bitcoiner, a Shitcoiner or just a tourist.
ETFs are backed by actual BTC acquired from OTC desks, which do not move the market.
But where does the liquidity come from?
It comes from us. What do you think staking is for (is 10% APY really worth it)? But that's not all.
In classic FTX fashion, they will first utilize your staking, then your deposit, and finally, the wrapped Bitcoins, most of which are essentially custodial IOUs centrally backed by a single exchange.
As a result, your BTC on aforementioned services will be replaced by paper bitcoin.
Subsequently, the OTC desk will attempt to repurchase all of its debts from the market gradually to prevent any significant market fluctuations, if they can't they will pull the usual tricks. Have you ever wondered why during unexpected market movements all the exchanges go into maintenance, they pause withdrawals and start pumping out stacking promotions? That's not a coincidence or market manipulation, that's to rebuild the liquidity.
So, if you have even just $10 worth of Bitcoin lying within reach of an OTC desk or exchange, it's time to take action.
This includes (from worst to worse):
a) Bitcoin held in any staking service (even decentralized ones)
b) Bitcoin held on any exchange
c) Bitcoin held in crypto or Bitcoin to fiat cards
d) Wrapped Bitcoins, excluding L-BTC and Lightning
e) Bitcoin held in custodial Lightning wallets unless they have a proof of reserve
What you should do:
a) Temporarily withdraw your Bitcoin to a self-custodial solution (if you can't do all 5, please do at least the first 4)
If you'd rather not deal with mainchain fees or navigate Lightning liquidity, and that's completely understandable, withdraw to Aqua or other liquid wallets, better if they support lightning-liquid interoperability so you can keep using lightning without going custodial.
The simplest method to convert wrapped BTC is to utilize a no-KYC exchange like
to swap into Liquid or Lightning to your Aqua wallet.
The best method is to redeem them from the exchange that is emitting the wrapped token so that they are forced to release the reserves (eg. BTCB should be redeemed from binance).
Please note: if you're looking to avoid mainchain fees, do not use Muun, as it isn't a Lightning wallet.
b) Encourage your friends to take the same action.
If we all do our part we can stop or limit their shenanigans and get the omega candle.
Please spread the word, rewrite this post to make it more beginner friendly, do whatever it takes.