Crypto’s recent crash has been immense, with Bitcoin dropping to an 18-month low (falling below $20,000) over the past few weeks. The sell-off in crypto came in reaction to headwinds caused by rising interest rates, inflation, and the broader fear of recession. Moreover, because all of these drops occurred in such a short timeframe, it could point towards a broader and more fundamental mistrust in crypto, and the platforms supporting them. Exchanges on different blockchains experienced similar key issues, with Celsius having to freeze lending and Solend considering what to do with a whale.
More recently, the market troubles have engulfed some crypto Hedge Funds. One example is the major crypto fund known as Three Arrows Capital. The firm has recently fallen into liquidation which is led by a restructuring company called Teneo. The media seems to have gotten little reply from either firm, and whatever info that has been leaked comes from an anonymous source, wishing to remain unnamed, because they were not authorized to speak on the matter publicly. Currently, Teneo is in the first few stages of the liquidation process and will be setting up a website within the next few days with instructions on how creditors can get in touch to make any claims.
What do you think about the current trend in crypto and what firms do you think will survive through it?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.