Crypto feels the shockwaves from its own ‘credit crisis’
— Crisis, Voyager, Value, Feels, System, Lender, Crypto, Shockwaves, Central, Assets, Capital, Financial, Credit, Market — 1 min read
Deflating bubble in digital assets has exposed a fragile system of credit and leverage in crypto. One by one, often-interlinked projects that locked up customers’ money face losses of millions of dollars. Total value of crypto tokens has dropped from above $3tn to less than $900bn as the market shrinks. Investors are fearful that more dominoes are about to fall, and are turning to the industry’s heavy hitters for rescue packages. The price of bitcoin, the largest cryptocurrency, has fallen more than 70 per cent since its peak in November. The first domino fell in May, when Terra failed, rattling investor confidence. Source