How One ‘Bitcoin Finance Skilled’ Makes Cash Whereas Dropping Hundreds of thousands

How One 'Bitcoin Finance Expert' Makes Money While Losing Millions

Keifer Atwood, a 27-year-old residing in Jacksonville, Arkansas, estimates he’s misplaced thousands and thousands on spectacularly dangerous crypto trades previously few years. Over the previous month alone, he claims he misplaced near $80,000 {dollars}—“my life financial savings.”

However chin up! It’s good for enterprise: Atwood has discovered a solution to make a modest residing by broadcasting these crypto-trading practice wrecks to just about 12,000 appreciative followers on his Twitch livestreaming channel, Crypto Keif.

“Are you saying that I’m liquidated? Oh my gawd, that was a accident, what the fuck!” drawls our hero in one among his more celebrated videos. In that one, Atwood manages to unintentionally place a big order on Bitcoin futures—on the very second the crypto takes a painful nosedive. It’s comedy gold.

“Wait—whaaaat? I did put a’ order?” he exclaims, baffled.

In one other clip, Atwood locations an extended place as a substitute of a brief place, and, once more, is liquidated just like the bowels of a Pomeranian evacuating a half-chewed squirrel.

Since Atwood’s losses started to significantly compound, followers have begun flocking to his Twitch channel to look at him make a large number of issues. He’s even obtained a sponsor out of his misfortune, a “Bitcoin on line casino” that perceives worth in affiliating with this man.

Weirdly, watching crypto merchants lose cash, dwell, appears to be a style that features a few different streamers corresponding to Cobielive and Doctor Degen. (His Twitch bio: “I am Doctor_Degen (John) began gaming again in 2018 to assist take care of melancholy. Since then I’ve managed to die 1000s of occasions on-line which has introduced nothing however real-world happiness!”)

Although Atwood et freres would possibly appear to be a stark warning towards risk-free crypto buying and selling, to me they’re the embodiment of that extra ennobled type of crypto fanatic—the self-effacing, brazenly degenerate dealer. Atwood particularly, along with his thick, rectangular spectacles and messianically lengthy hair, is a far cry from the loafer-wearing gargoyles of the trade mainstage. The sense that he’s genuinely not doing properly off of this makes him refreshingly genuine—a tough factor to return by on this sordid world of grotesque shills and counterfeit payments!

What additionally me was Atwood’s considerably extra ominous choice within the wake of all of the publicity to mint his personal crypto token, “KeifCoin.” It appears to have been largely created as a solution to recoup previous losses and has already prompted some consternation amongst its “buyers.”

“It went loopy this previous week,” he instructed me, earlier this month. “Now I simply been working all week on this coin, I’ve been making an attempt to do all the things I can to make it work.”

Keif’s grim beginnings

Atwood instructed me he started his amusingly unfortunate “profession” round 2013, when he began mining bitcoin however deserted it simply earlier than doing so grew to become profitable. Then he invested in Bitcoin and held it for years, made slightly cash, however was unlucky sufficient to promote his holdings simply earlier than the 2017 surge. Had he not offered, he mentioned, he would have made round $3 million.

Subsequent he made a seemingly disastrous transfer, from holding unsuccessfully to buying and selling unsuccessfully. Scroll right down to see how properly that lil’ gambit turned out, eh?

One other day on Crypto Keif’s Twitch channel

Coming into the thrilling world of leverage buying and selling

However making a silk purse out of a pig’s ear, he determined to stream his adventures in buying and selling, dwell, to some loyal followers on Twitch. The true leisure worth got here when, after his fortunes dwindled from $250,000 to $100,000, Atwood determined to enter the thrilling world of leverage buying and selling, which in fact, he knew nothing about, he readily admits.

Leverage buying and selling, as nearly everybody else is aware of, is an awfully dangerous solution to make a buck. It principally refers to borrowing cash from an alternate at a a number of (10x, 20x, and many others.) of what you have already got—so should you’ve obtained $10 credit score on, say, BitMEX, 10x leverage would offer you $100 to play with. The essential side is that leverage multiplies each your earnings and your losses, and in case your funding plummets you need to pay for not solely your losses however the lender’s, too. In crypto, exchanges usually unload merchants’ holdings preemptively and routinely, to keep away from losses which are too huge—a course of often known as liquidation, the artwork type which our beloved Keif has perfected.

Time was {that a} margin of merely 5 % was thought of extreme, however crypto exchanges like BitMEX and Binance (Atwood’s platform of selection) pioneered obscene multipliers of 75x, 100x, 125x — all of which was catnip to Atwood. And certain sufficient, little by little, Atwood’s as soon as wholesome $100k discovered itself liquidated into, like, $20k.

“So clearly that was a mistake and he is a horrible leverage dealer,” mentioned Cryptonius Maximus, a passionate Crypto Keif viewer and crypto dealer. “However he is hilarious and good hearted.”

Others, together with Crypto Cobain, a Twitter “crypto superstar” with virtually half 1,000,000 followers, thought so too and began tweeting about him. “And 1000’s of views begin pouring in,” recalled Maximus. “Perhaps you may say he invested $80,000 in changing into a Twitch persona.”

It’s true that Atwood is a enjoyable watch, and his unflinching, laconic model within the face of perennially ruinous trades has a sure type of honesty to it, and units him other than merchants who fake to know what they’re doing.

“I’ve made a mistake each time,” Atwood mentioned, and laughed, maniacally. “Generally I’m proper, typically I’m improper and it’s tremendous entertaining for everyone. It took me some time to comprehend that utilizing leverage is what takes your cash.”

But he ascribes no ethical or in any other case lofty dimension to it. “It’s similar to playing,” he mentioned. “That’s all it’s.”

Keif will get a sponsor

Nonetheless, Atwood is doing all proper. The unusual logic of crypto has prevailed. He not trades his personal financial savings, however as a substitute makes use of the sponsorship cash that Bitcoin on line casino gave him through the previous two years. He mentioned the corporate used to pay him round a greenback an hour whereas streaming his program–which can go on for hours and hours—however lately it upped the sum to round $180 for a complete day of streaming. Not dangerous, if he can stick with it!

Atwood mentioned the sponsorship deal has engendered a form of closed loop of expenditure: the on line casino sponsors him, he fritters the cash away by way of over-leveraged futures trades, and he and the on line casino achieve extra consideration in consequence (like this story, in reality! Hey… wait a minute) and the entire cycle repeats.

There’s an exquisite perpetual movement to it, actually.

A few of Crypto Keif’s followers on his chat board talk about getting wealthy.

And Atwood does handle to carry onto it a number of the time, a minimum of. He says $180 a day is sweet cash in Jacksonville, Arkansas. “It’s one of many poorest areas,” he mentioned. “There are not any crypto

millionaires right here—the common individual in Arkansas is just getting like $100 a day from working.”

However wait! There’s extra!, as the person on the late-night-TV adverts says…

A shitcoin is born

“After I liquidated nearly all of what I had, I created my very own coin—and that was the start of KeifCoin,” he mentioned.

Atwood minted his coin June 16 by way of a generic shitcoin generator on Binance Chain known as Cointool. He pitched it as genuinely novel and helpful—it has some gimmicky “deflationary” characteristic which burns quite a few tokens after each transaction. He has additionally declared publicly that the brand new coin would “dethrone Ethereum.”

He’s properly conscious that he has now turn out to be the topic of moral, if not authorized, scrutiny from all corners.

“Everybody sayin’ I’m gonna rugpull the coin however I’d by no means try this,” he vowed, referring to the phenomenon through which a token developer dumps a big tranche of premined tokens on early holders when the worth will get excessive sufficient. Not for him: As a substitute, he mentioned a good friend suggested him to hoard solely “10 to fifteen %” of the provision, or else he would “freak everyone out.” So he did simply that.

It’s this type of wacky nonsense that has made Keifer so beloved amongst his followers, and he genuinely appeared to worry in our interview about letting them down along with his “KeifCoin” gambit. He instructed me he was anxious that the coin had already misplaced its verve, and mentioned it was already slipping from a earlier excessive level of $300,000. I couldn’t discover any indication of such a excessive market cap, or, certainly, any point out of “market cap” in any respect, wherever. To be taught the barest particulars about KEIF’s worth, I as a substitute needed to resort to a spurious valuation of $0.003 per coin on a website known as “PooCoin.”

However no matter—Keif looks as if an excellent lad. I belief him! However not with my cash in fact.

What might presumably go improper?

Just a few days in the past, Atwood known as me, round midnight my time, in a panic. I feel he was unnerved that I had requested a few of his followers to DM me personally, as if I used to be searching for filth. I wasn’t, tbh, as a result of I’m not paid sufficient to dig that deeply into issues I “report” on.

Nonetheless, when Atwood known as he was eager to guarantee me that his coin was actual, that he wished it to “final endlessly,” and that he was filling out purposes to listing his coin on varied “respectable” exchanges, and constructing out a correct web site and many others. to make it legit. He’s even going as far as to look into “advertising” for his new token.

“I’ve obtained folks contacting me about advertising, and graphic design,” he mentioned, betraying greater than a touch of satisfaction, “and I’ve reached out to CoinGecko and stuff.”

He requested me if there was something I, as a journalist, thought he might do to, , bump the recognition of his coin.

I instructed him it may be a good suggestion to talk to a lawyer first, earlier than doing something. He’s engaged on that, he mentioned: “My former lawyer, who obtained me out of life-changing [drug, he said darkly] prices, is placing me in contact with a crypto lawyer.”

A crypto lawyer!? I’ll be damned. At the least if this complete factor goes much more catastrophically improper, Keif can livestream the inevitable court docket proceedings. Perhaps the US Securities and Alternate Fee pays $180 a stream.

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