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"As the downturn was so fast and violent, many have proclaimed that digital assets are dead." "Looking back now, the excitement and prices of assets were clearly getting ahead of themselves and trading far above any fundamental value," said Katie Talati, director of research at Arca, an investment firm focused on digital assets. FTX founder Sam Bankman-Fried admitted on Thursday that he "f-ed up." On Friday, he stepped down as CEO. In a blink this week, FTX sank from a $32 billion valuation all the way to bankruptcy as liquidity dried up, customers demanded withdrawals and rival exchange Binance ripped up its nonbinding agreement to buy the company.

Rather than acting as a hedge against inflation, which is near a 40-year high, bitcoin has proven to be another speculative asset that bubbles up when the evangelists are behind it and plunges when enthusiasm melts and investors get scared.Īnd the $135 million that FTX spent last year for a 19-year deal with the Heat? The crypto exchange with the naming rights is poised to land in the history books alongside another brand that once had its logo on a sports facility: Enron. The industry, once valued at roughly $3 trillion, now sits at around $900 billion.

In the 12 months since bitcoin topped out at over $68,000, the two largest digital currencies have lost three-quarters of their value, collapsing alongside the riskiest tech stocks. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit