Ah, the majestic world of crypto! Where dreams are made, and rug pulls are the new shock therapy.
Grab your meds, booze, ice cream, tissue paper or whatever as I breakdown crypto’s most infamous side effects: anxiety, depression, and trust issues. Hooray!
(Oh, don’t roll your eyes, I promise it’s delightful and insightful…for masochists, no judgement.)
Let’s pretend for a moment that I’m a smart doctor lady, with glasses, a white nerd coat and of course my signature red lipstick.
Congratulations, for those of you who pictured that in your minds eye, you are not a robot. You have also exercised the part of your brain that manufactures imagery. (Again, not a real doctor, have no clue what area of the brain is responsible for that.) What I do know is that we attribute emotions to images aka memories that are stored in our brain.
When we experience something unpleasant, we attach that emotion to a memory and that gets recorded. The point is, shit happens, we screenshot and attach feelings. But if shit keeps happening there could be a system overload or a mental and emotional repeat and recycle loop. (Still not a real doctor, but I do look good dressed up as one.)
Anyway, the mental health impact of events like rug pulls in crypto can be multifaceted, and the effects on individuals may vary. Here are some ways that might impact mental health:
- Anxiety and stress: The uncertainty and volatility of the crypto market can lead to increased levels of anxiety and stress for some individuals, particularly if they have a significant portion of their assets invested in these markets. The possibility of rug pulls and other scams can exacerbate this anxiety.
- Loss of trust and confidence: Experiencing a rug pull or similar event can cause a loss of trust in the project, the blockchain ecosystem, and the broader cryptocurrency market. This loss of trust might create a sense of insecurity and negatively affect an individual’s overall well-being.
- Financial stress: A rug pull can lead to significant financial losses. Financial stress is a well-documented contributor to mental health issues, including depression, anxiety, and even physical health problems.
- Guilt and self-blame: Some individuals might experience feelings of guilt or self-blame after a rug pull, especially if they encouraged friends or family to invest in the same project. These feelings can be detrimental to mental health and self-esteem.
- Fear of missing out (FOMO): The high stakes and rapid pace of the crypto market can cause FOMO. Seeing others profiting from investments or feel pressured to participate in risky ventures, can result in increased anxiety and feelings of inadequacy.
- Addiction: The excitement and adrenaline rush of investing in volatile markets can become addictive for some people, leading to unhealthy behaviors and an inability to disengage from the market. This can contribute to poor mental health and strained relationships with family and friends.
This shit sucks, and can mess a person up.
Apart from the mental health impacts there are a range of other consequences.
Market reputation: Rug pulls can damage the reputation of the entire cryptocurrency market, as they create a perception of high risk and potential scams. This might discourage new investors from entering the market or cause existing investors to lose faith in the ecosystem.
Regulatory scrutiny: As rug pulls and other fraudulent activities increase, regulators might take more interest in the cryptocurrency space. This can lead to increased regulations and enforcement actions, which could impact the growth and innovation of the industry.
Impact on legitimate projects: Scams like rug pulls can create a negative environment for legitimate projects, as investors might become more cautious and skeptical. This can make it harder for genuine projects to raise funds and gain community support.
Loss of funds for investors: One of the most direct impacts of rug pulls is the financial loss suffered by affected investors. In some cases, these losses can be substantial and have long-lasting consequences for individuals and their families.
Network effects: A rug pull on a particular blockchain ecosystem, such as Cardano, can have negative network effects. The loss of trust and confidence in the ecosystem might result in a decrease in the number of users, developers, and projects, which could hinder its growth and overall success.
Social implications: The losses incurred by individuals might lead to strained relationships among friends and family members, particularly if they invested together or one individual introduced the other to the investment opportunity.
Impact on innovation: Rug pulls can cast a shadow over the entire industry and stifle innovation. As trust in the ecosystem is eroded, funding for new projects might become scarcer, making it harder for legitimate and innovative ideas to gain traction.
Barriers to entry: The prevalence of scams, including rug pulls, can create barriers for new investors and businesses looking to enter the space. The perceived risk and complexity of navigating the market can deter many from exploring the potential benefits of blockchain technology and digital assets.
Effect on mainstream adoption: Widespread rug pulls and similar events can slow down the adoption of cryptocurrencies and blockchain technology by mainstream businesses and consumers. A lack of trust and a negative perception of the industry might make individuals and organizations hesitant to adopt or invest in cryptocurrencies.
Changes in behavior: The risks associated with rug pulls can lead to changes in behavior, such as a preference for more established and reputable projects over newer, lesser-known ones. This might result in a consolidation of the market, with fewer new projects able to gain momentum, attention or even compete with established players.
So what do we do? Where should we start?
Education: To counteract the negative impact people need more resources to educational info, and awareness about the risks and best practices for the crypto space. This is a “state the obvious” kind of suggestion, considering you are reading this article.
Community resilience: The crypto community’s ability to identify and resist rug pulls and other scams can impact the overall health and resilience of the ecosystem. A strong community response to sharing information and supporting affected members, can help build trust and foster a more secure environment.
Wrapping it all up.
Simply put, call these dickholes out. If you suspect something, then for fuck’s sake say something. Keeping silent, because you don’t want to say anything wrong or be “that” person makes you something worse. It makes you the coward who allowed it to happen, which in my opinion makes you just as guilty as the douche water that fucked people over. Stop being a bitch.
If you want to keep Cardano decentralized, then demand better and stop allowing the bullshit to pollute the ecosytem. (And wink wink, maybe go check out $NFTC, cuz, ah hum, that’s kinda my jam.)
Not financial advice, blah blah, don’t sue me, this is more like life coaching, and you’re welcome.
Official disclaimer: The images used in this article are from AdaTv, a NFTCreative adopted and owned project that donated 25% of mint profits to support Mental Health. Proceeds were sent to NAMI (National Alliance on Mental Illness). If you or someone you love is suffering from mental health issues talk to your medical provider for help. NFT Creative, respects and recognizes the challenges of Mental Health.
HUMPDAY SPACE 
