Crypto’s Latest Acrobatics Show It’s Failing The Test
- Date: 24-May-2022
- Source: Morning Star
- Sector:Financial Markets
- Country:Middle East
Crypto’s Latest Acrobatics Show It’s Failing The Test
If Julius Caesar had seen crypto’s plight in the last seven days he probably would have sympathised. He once suffered a similar (though slightly deadlier) drubbing, during mid-March, 44 BC.
It really has been bad for crypto. Over the past several days, the "stablecoin" UST, designed to be worth one US dollar, plunged to $0.26. (Some "currency" that!) The stock of cryptocurrency exchange Coinbase (COIN) – the National Basketball Association's exclusive crypto platform – shed more than half its value. The price of the oldest cryptocurrency, bitcoin, dropped 30%.
The industry's struggles illustrate the logic behind the SEC's go-slow approach to cryptocurrency approvals. Although cryptocurrency vendors claim to have sorted through the details – UST was not called an "unstable coin," after all – they overstate what they know and can deliver. As with their customers, vendors are learning as they go. The field remains new, untested, and fickle.
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