Tom Lee Knows Why the Crypto Market Crashed: $BEST May Be the Safest Investment Now

Overview

The recent crypto market crash on October 10 has raised concerns about the structural weaknesses in major liquidity providers. Tom Lee, chairman of BitMine, highlighted how this selloff revealed vulnerabilities that became apparent during high volatility, leading to a significant loss in market liquidity.

What Happened?

On October 10, a substantial selloff occurred in the crypto market, resulting in a record liquidation cascade. Nearly $20 billion was wiped out in a matter of hours. This event forced over-leveraged market makers to quickly unwind their positions as collateral values dropped. The derisking process drained liquidity from order books, widened spreads, and intensified the crash, creating a feedback loop that exacerbated the situation.

For everyday users, this liquidity vacuum was not just a macroeconomic issue; it had direct consequences. Swaps began to fail, transaction fees spiked, and centralized wallet pipelines became bottlenecks during a critical time. When the infrastructure that users depend on falters, they are left vulnerable and reliant on the balance sheets of others.

In light of this, many investors are shifting their focus from price action to tools that can withstand market stress. Best Wallet is positioning itself as a solution to this problem, offering a mobile-first, non-custodial ecosystem designed to keep users in control even when external market conditions deteriorate.

Market-Maker Liquidity Crunch Explanation

Tom Lee pointed out that when major market makers operate with aggressively leveraged positions, a sudden shock—like the recent crash—can quickly turn them into forced sellers. As they unwind their positions, liquidity thins out and can even evaporate, leading to increased slippage and poor execution quality. This situation renders long-tail tokens and smaller trading venues nearly untradeable for extended periods.

Centralized exchanges and brokerages often appear stable until volatility exposes mismatched liabilities or overextended positions. For everyday users, the challenge becomes how to trade or rebalance portfolios without depending on any single entity’s balance sheet or uptime during market turmoil.

Different wallets are exploring various solutions to address these challenges. For example, MetaMask is focusing on smarter routing and institutional integrations, while Trust Wallet emphasizes simplicity and broad asset support. Phantom is expanding its services from Solana to EVM chains to capture multichain retail flow. Best Wallet, currently in presale, aims to enter this competitive landscape with a unique approach that combines a user-friendly mobile interface with a security-focused backend.

Why Best Wallet Is Positioning Itself as “Crash-Resistant”

Many wallets function as thin front-ends, but Best Wallet is taking a different approach by building a full-stack, volatility-aware ecosystem. This system assumes that market turbulence is the norm rather than the exception. The team aims to capture 40% of the global wallet market by the end of 2026, targeting users who seek institutional-grade security within a mobile-friendly design.

Best Wallet features the first fully integrated Fireblocks MPC-CMP wallet within a retail app. This technology eliminates single points of failure by splitting transaction signing across independent shards, thus maintaining fast transaction speeds for everyday trading. The app also includes a multi-wallet portfolio system, allowing users to manage long-term holdings, active trades, and experimental positions without needing to juggle multiple addresses.

In addition to storage, the product emphasizes user access. The Upcoming Tokens portal enables users to participate in early-stage presales with a streamlined purchasing process, while the Best DEX aggregator optimizes trades for price and execution by pulling routes from various chains and decentralized exchanges in real-time.

The Best Wallet Token is designed to provide utility linked directly to user activity. Holders benefit from reduced in-app fees and can stake into a dedicated rewards pool. Staking is already live during the presale, giving early participants an opportunity to compound their holdings.

Impact on the crypto market

• The October 10 crash exposed vulnerabilities in major liquidity providers, prompting concerns over market stability.
• Best Wallet is gaining traction as a solution to enhance user control and security during market volatility.
• The presale for Best Wallet has already raised significant funds, indicating strong interest from investors.
• The emphasis on tools that can withstand market stress may reshape user preferences in the crypto ecosystem.
• A shift toward self-custodial solutions could alter the landscape of wallet services and user engagement in the crypto market.

Updated: 11/21/2025, 12:47:19 PM