The FTX Contagion Spreads, but Bitcoiners Stay Engaged
Asset prices hold up regardless of pressure
Dear Subscribers,
Every day that passes brings another twist in the FTX scandal, and we’re only now getting a view of what really went down.
And what was that?
In my opinion, a fraud with a bent toward a classic Ponzi scheme, one wrapped in lies, hype, and grift. Everything was “fine” as long as people deposited their money with FTX, and as long as a certain number of those folks never tried to withdraw their digital assets.
But like all schemes, the redemptions led to the downfall. Once people started investing their money, it became clear that the assets were never really there.
This is why it remains risky to keep assets on an exchange.
However, this week did see some promising developments—including that the price of Bitcoin remained in the $16,000 range even after all the pressure and the revelations. Sure, that’s down from the beginning of the month, but those who expected Bitcoin to drop close to $10,000 in the aftermath of the collapse have been proven wrong.
It seems Bitcoiners are still engaged, and still interested in holding the investment.
Other digital assets have sold off too, but not nearly the way expected give the wake of a scandal that is giving Bernie Madoff a run for his money.
And that says a lot about the resiliency space.
Onward to another week,
Sara
The Crypto Connection is for entertainment purposes only and is not meant to be financial advice. Please do your own research before investing in any asset class. Sara Celi is not a financial advisor, and holds several cryptocurrencies. To purchase her books on Amazon, please click here.