2 TO UNDERSTAND CRYPTO’S VOLATILITY, THINK ABOUT IT AS A STARTUP
by Omid Malekan
Spring of 2022 was a dark time for the crypto industry. Between April and June, Bitcoin’s value more than halved; other coins fell even more. The Terra-UST ecosystem, which paired a crypto coin with one designed to be pegged to the dollar, collapsed, wiping out $60 billion worth of value and leading to cascading failures among crypto lenders. Established companies like Coinbase, a popular crypto exchange, announced layoffs.
Amid the turmoil, crypto skeptics doubled down on their critiques, often with a focus on the speculative excess, and argued that the crash revealed crypto as a Ponzi scheme. As evidence, some cited the extreme volatility. How could crypto ...
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