1/

After supporting $PHA @PhalaNetwork for almost 5 years, I’ve made the difficult decision to fully exit my position.
I actually bought heavily again around $0.035 believing in the long-term story.
Today, I’m out around $0.026 taking roughly a 26% loss.
Here’s why. 🧵
2/
First, let’s get one thing clear.
I still believe Phala has talented engineers and is building interesting confidential AI products.
This is not a thread saying the technology is bad.
It’s a thread explaining why I no longer want to own the token.
3/
Over the past few weeks, my biggest concern has been the growing disconnect between:
• Building the business
and
• Creating value for the token.
A crypto project can build an amazing product.
But if there’s no clear path for value to accrue to the token, investors have every right to ask questions.
4/
The recent treasury sales were the turning point for me.
If large amounts of tokens needed to be sold, I believe OTC would have been a better route to minimize market impact.
Instead, many holders watched the price come under heavy pressure.
That damaged confidence.
5/
Another concern was transparency.
The community repeatedly asked for more details around the treasury transfers and sales.
While the team did communicate, I personally felt many of the key questions remained unanswered.
Transparency is especially important when long-term holders are affected.
6/
After reading @marvin_tong replies, one thing became clear.
The team’s primary focus is building a successful business.
I completely respect that.
In fact, I think founders should obsess over building great products.
7/
Where I disagree is this:
As investors, we aren’t only investing in a company.
We’re investing in a token.
Those are two different things.
A successful business doesn’t automatically create a successful token.
There must be a mechanism connecting the two.
8/
Marvin himself acknowledged that the long-term token utility is still not fully defined.
I appreciate the honesty.
But for me, that honesty also highlighted the uncertainty.
If even the long-term token model isn’t clear yet, I don’t have enough conviction to stay invested.
9/
Personally, I also believe there were other options.
The team could have explored strategic fundraising, partnerships, or deeper engagement with long-term stakeholders before relying on treasury token sales.
They may have considered those options already I simply would have liked to see more discussion around them.
The sequence of events damaged my confidence.
The token rallied sharply toward ~$0.0.06 and shortly afterward we learned about significant treasury sales. Whether or not the two events were related, the timing created a perception problem for me as an investor.
Better communication beforehand and a more transparent treasury strategy could have avoided much of this uncertainty.
10/
Could PHA still pump from here?
Absolutely.
Crypto markets can surprise everyone.
This thread is not a price prediction.
It’s simply explaining why my investment thesis has changed.
11/
I’ve recommended $PHA multiple times over the years.
Many community members made 3x–5x during previous cycles multiple times
Because of those gains, taking a 26% loss on this trade doesn’t change the bigger picture.
In investing, protecting capital and moving on is often better than hoping your thesis eventually comes back.