Follow along as Valkyrie's Head of Portfolio Management, Bill Cannon, highlights a notable "byte" from the markets each week.
It is obvious the entire crypto sector is under pressure but industry leaders are stepping up.
It is obvious the entire crypto sector is under pressure. Similarities between the 2008-09 credit crisis and the current crypto cleanse have been established, but the ending will always be different. During the credit crisis, the U.S. government stepped in, helped most of the big banks and saved the day. Crypto doesn't have that backdrop, and frankly, it's designed that way. Similar to the credit crisis, crypto companies are currently merging, partnerships forming, and the process of consolidation is underway. Many entities are also failing or likely to fail, which is an unfortunate part of the cleanse but is a necessity to rebuild with a stronger foundation. (Hold on for traditional finance credit defaults to start happening soon folks!) Crypto exchange, FTX, with a $32 billion valuation, is helping struggling companies by extending lines of credit to strengthen balance sheet. "I do feel like we have a responsibility to seriously consider stepping in, even if it is at a loss to ourselves, to stem contagion," FTX CEO Sam Bankman-Fried told NPR this weekend. To paraphrase what was said last week, the technology is not broken, let's clean up the mess, build a sustainable platform to grow, and move forward...