![]() ![]() Celsius, Three Arrows and Voyager file for bankruptcy. Crypto-banks Celsius and BlockFi, hedge fund Three Arrows Capital and broker Voyager face liquidity and other issues, with investors in many cases unable to get their money back. The erosion of something so hot has a negative effect throughout the industry. Whales and institutions sell it frantically, wiping out the wealth of hundreds of thousands of investors. It starts with terra - a hot stablecoin and a companion token - falling apart. Over a few weeks beginning in May, crypto collapses. FTX founder Sam Bankman-Fried also takes note and becomes a major political donor. Some state regulators also raise concerns, ordering some crypto businesses to stop doing business in their states. So do crypto-friendly ransomware attacks.Ĭongress begins to pay more attention - the Senate puts a crypto provision in an infrastructure bill in 2021. “Rug-pulls”- scams where newly launched coins are hyped by founders who quickly sell them and disappear - multiply. The value of dogecoin, a dog-based coin launched as a satiric commentary on the crypto enterprise, skyrockets thanks to Elon Musk, then crashes. The rush also seeps into weirder provinces. Bitcoin goes from $6,000 to $60,000, creating more whales. New cryptobanks like Celsius take off, offering seemingly magical 25 percent returns for depositors who leave their money with it. Forget transactional uses - this is about making a fast investment buck.Īn exchange founded the previous year, FTX, starts to gain traction. But they have an infusion of cash - buoyed by stimulus checks and all the income they’re not spending elsewhere. A pandemic strikes, the world shuts down, and people are suddenly stuck at home with nothing to do. ![]()
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