The latest installment in the series of disasters has arrived
So what does all this mean for states that have openly embraced cryptocurrency companies?
“While we have feelings of disappointment with FTX, we are resolved and optimistic about the future of the industry.”
In September, crypto mining data center operator Compute North
Compute North was the state’s only notable cryptocurrency bankruptcy this year.
“I can’t name them, but there are a few,” he said. “Most are fully open.”
“But we are bullish about the future,” he said. “I think the worst is behind us.”
“This is more than just a bubble,” she said. “It’s collapsing. It’s a dying industry. The problem is that a lot of these things can’t be put back together. There are real world consequences for the people who invested in these companies.”
A senior economist at Oxford Economics said the maximum cryptocurrency valuation is meaningless for assets that “have not yet established a real economic use”.
“The cryptocurrency market is plagued by accusations that it is a super-massive Ponzi scheme. It will be difficult,” Vasiliev wrote.
Sawicky said cryptocurrency companies are designed to consume resources such as electricity, but do not produce useful products.
“We’re cleaning up the pump and the fraud,” Cummins said.
Going forward, Bitcoin will likely become even more dominant in the cryptocurrency market, and smaller coins like Luna will decline, Cummins said. Pricing site CoinGecko has found that about 40% of the more than 8,000 cryptocurrencies listed on the site in 2021 will be deactivated or delisted, making them “dead coins.”
This means consumers are likely to turn to platforms that offer better consumer protection.
“People who got burned in FTX may be over,” Cummins said. “But many will continue to be involved.”