{"id":39651,"date":"2022-11-16T21:00:00","date_gmt":"2022-11-16T20:00:00","guid":{"rendered":"https:\/\/www.11onze.cat\/?p=39651"},"modified":"2023-02-03T08:52:39","modified_gmt":"2023-02-03T07:52:39","slug":"new-crypto-winter-cryptocurrencies","status":"publish","type":"post","link":"https:\/\/www.11onze.cat\/en\/magazine\/new-crypto-winter-cryptocurrencies\/","title":{"rendered":"A new crypto winter for cryptocurrencies?"},"content":{"rendered":"
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In the last year, negative news has been accumulating in the cryptoasset market. After the bankruptcy of crypto-asset platform FTX and the loss of almost three quarters of the value of bitcoin in a year, the future of cryptocurrencies seems more in doubt than ever.<\/b><\/h3>\n

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The Super Bowl is the world’s most expensive advertising showcase. In its last edition, held in February, nearly 7 million dollars were paid for a 30-second advert, something within the reach of very few companies. One of them was <\/span>FTX, the world’s third-largest crypto asset platform at the time<\/b>. Its <\/span>ad<\/span><\/a> compared cryptocurrencies to some of mankind’s greatest inventions, presented the company as “a safe and easy way” to access this market and ridiculed the sceptics.<\/span><\/p>\n

Just a few months later, <\/span>FTX filed for bankruptcy and threatens to leave more than a million people around the world <\/b>without their money. Founder Sam Bankman-Fried’s empire collapsed in just one week.<\/span><\/p>\n

Following the sudden drop in the price of the FTX token in early November, Bankman-Fried requested a bailout from Binance, the world’s largest digital asset exchange platform. Although Binance initially agreed to help him, a few hours later it backed out, citing mismanagement of funds and other irregularities. On 11 November, FTX had no choice but to announce in a <\/span>tweet<\/span><\/a> the filing for bankruptcy proceedings and the resignation of Sam Bankman-Fried as CEO.<\/span><\/p>\n

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Possible contagion<\/b><\/h3>\n

As with many cryptocurrency companies, <\/span>FTX’s house of cards was built on expectations of revaluation<\/b>. When investor confidence crumbles, nothing can stop a catastrophic spiral that eventually takes down the company, which in FTX’s case had reached a valuation of $32 billion at the beginning of the year.<\/span><\/p>\n

Given its size, <\/span>the aftershocks of FTX’s collapse are expected to be prolonged and devastating<\/b>. The first victim could be the Crypto.com platform, which in recent months had already made massive layoffs due to the turbulent situation in the crypto-asset market. Its token Cronos has lost more than half of its value in less than a week.<\/span><\/p>\n

Sources indicate that the platform deposited more than $1 billion in FTX, of which it was only able to recover about $100 million. However, Crypto.com’s CEO has <\/span>denied<\/span><\/a> this on Twitter, claiming that its exposure to FTX is less than $10 million. The truth is that <\/span>his message has failed to calm the markets<\/b>, which continue to fear the collapse of this platform.<\/span><\/p>\n

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The risk of a new “crypto-winter”.<\/b><\/h3>\n

The collapse of FTX and the crisis at Crypto.com come against a backdrop of doubts about the future of cryptocurrencies. After reaching a valuation of 58,358 euros in November 2021, the successive falls of what became known as <\/span>the “crypto-winter” and the uncertainty of the last few days have pushed bitcoin below 16,000 euros, which means it has lost almost three-quarters of its value in a year<\/b>.<\/span><\/p>\n

As we explained in the <\/span>article<\/span><\/a> “Cryptocurrencies, a highly volatile asset”, bitcoin is no exception. <\/span>Volatility has also affected other cryptocurrencies in recent months<\/b>. For example, Ether lost two-thirds of its value between April and June, falling from more than \u20ac3,000 to less than \u20ac1,000, before rising back above \u20ac1,900 in mid-August and dropping below \u20ac1,200 in recent days.<\/span><\/p>\n

Terra Luna, the most talked-about case until the FTX debacle, went from being worth more than 80 euros at the beginning of May to being practically worthless in little more than a week. And yet it was a ‘stablecoin’, i.e. a cryptocurrency whose value is linked to that of another currency, commodity or financial instrument, which should provide more stability.<\/span><\/p>\n

Although crypto-assets continue to have many enthusiasts, more and more portfolio managers assume that the structure of this market is too risky and the losses are too great. <\/span>The notion of bitcoin as the new digital gold, a safe haven in turbulent times, has faded<\/b>. As a result, many institutional investors are turning their backs on crypto-assets to increase their participation in theoretically safer markets, such as precious metals.<\/span><\/p>\n

In any case, the current crisis in the cryptocurrency market reminds us of the<\/span> importance of having a diversified portfolio<\/b> to protect us from sharp falls in the valuation of any of our assets.<\/span><\/p>\n

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Session on cryptoeconomics<\/b><\/h3>\n

If you want to learn more about the crypto-assets market, <\/span>on 22 November at La Pla\u00e7a we will be hosting Susana Rodr\u00edguez Urgel, founder of The Digital Advisory Board, who will be speaking live about cryptoeconomics <\/b>in the second chapter of “Que no faltin!\u201d series.<\/span><\/p>\n

This expert in cryptography and one of those responsible for “the commercial and digital transformation of Telef\u00f3nica” more than a decade ago, as James S\u00e8ne, president of 11Onze, pointed out, promises <\/span>a provocative session open to debate<\/b>. If you are interested in participating live to raise your doubts and questions, you can write to continguts@11onze.cat.<\/span><\/p>\n\n <\/div>\n <\/div>\n <\/div>\n<\/div>\n\n\n

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