Recently, the meme coin DJT has become a hot topic in the market, with renowned trader GCR even challenging Martin Shkreli to a one billion dollar bet before the identity of DJT’s creator was revealed, betting that DJT is not a token issued by Trump.
This event inevitably brings to mind the bet in March 2022, when Terra founder Do Kwon and GCR bet 10 million dollars on Twitter, wagering that LUNA would be below the market price at that time ($88) in a year. As we all know, LUNA and UST collapsed, and GCR won the bet, even making a substantial profit from shorting LUNA.
A similar situation is unfolding again, could this be a sign of the market entering a bear market? In response, GCR himself stated on X that the bet in 2022 took place in the mid-term of a bear market. The current market structure resembles more closely the collapse after the boom of decentralized finance (DeFi) in late summer 2020, with shades of the summer of 2021. However, GCR emphasizes that people should not overly rely on historical patterns, as each cycle’s development will be different, and concludes by saying:
