In recent days, the meme coin DJT has become a hot topic in the market. Well-known trader GCR even made a statement before the identity of DJT’s creator was revealed, challenging Martin Shkreli to a bet of one hundred million US dollars, betting that DJT is not a token issued by Donald Trump.
This event inevitably brings to mind the incident in March 2022, when Terra founder Do Kwon and GCR made a bet on Twitter, wagering ten million US dollars that LUNA would be below its market price at that time (88 US dollars) after one year. As we all know, LUNA and UST collapsed, and GCR won the bet, even making a large profit from shorting LUNA.
A similar situation is occurring once again. Could this be a sign of the market entering a bear market? In response to this, GCR himself stated on X that the bet in 2022 took place in the mid-term of a bear market. The current market structure is more reminiscent of the collapse after the boom of decentralized finance (DeFi) in late summer 2020, and even has shades of the summer of 2021. However, GCR emphasized that people should not overly rely on historical patterns, as each cycle’s development will be different, and concluded by saying: