A well-known cryptocurrency skeptic has issued a terrible warning to investors of mother and father that more pain will come after the market crash.
A well-known cryptocurrency skeptic has issued a terrible warning to investors of mother and father that more pain will come after the market crash.
David Gerard, author of 50-foot block chain attackhe told Nine’s 60 minutes Sunday was concerned about the lack of regulation in the industry, where endorsements from celebrities like NBA star LeBron James had created a market full of manipulation, scammers and scammers.
“Everyone loves the siren of a rising number and they think, this is my chance,” he said.
“[But] we need to think about the real victims, the mothers and fathers, the grandmothers who think their retirement should go in crypto. There is a real human cost here and these are the normal people who are scammed. You can’t get rich for free. It would be thought that this was obvious, but people are still waiting for a way out and they will come out ahead, but it is always a false hope. Some people do it very well, but more people are absolutely devastated. “
He warned that much of the cryptographic industry had become a dangerous cult.
“Most of the volume, the way the market works, the way prices are set, it all happens in a completely, literally unregulated environment,” he said.
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“This accident has really taken home people who, in fact, the music will stop at some point. People who have bought in the last six months will basically be stuck with magic beans and are trying to figure out How to download them. Many of them will have to receive the blow and it will not be pleasant “.
The cryptocurrency market suffered one of its biggest crashes last month after the complete collapse of two of the most popular and supposedly “stable” currencies, land and its sister moon token.
It caused the price of bitcoin to drop below $ 27,000, dragging the entire market and eliminating hundreds of billions of dollars in value overnight.
In one day, more than $ 400 billion was removed from the market.
Bitcoin is currently trading at just under $ 30,000, having lost more than half its value since reaching more than $ 67,000 last November.
Some analysts have predicted it could drop to $ 8,000, losing 70% of its current value.
‘Ponzi scheme’
The extraordinary crisis has led some experts to declare that the cryptocurrency bubble has finally burst.
“As a result of much higher inflation and interest rates, the big Ponzi scheme of unregulated cryptocurrency has finally started to fall apart,” said Coolabah Capital founder and founder. Australian Financial Review Contributing editor Christopher Joye wrote last month.
Joye said the “captivating belief” that these financial products had been pushed into “naive consumers” with little regulatory protection, and that the SEC in the US, the FCA in the UK and the ASIC in Australia had been ” missing in action “.
“The main drivers of the madness of cryptocurrencies were the interest rates of conventional cash (for example, bank deposits) which reached zero during the pandemic, while at the same time governments poured billions of dollars in cash in household savings accounts in an effort to stimulate more spending, investment and speculation, “he wrote.
“The spirits of the animals were certainly released, as all asset classes soared to record highs. As these forces are reversed as interest rates soar (it makes the cash it seems suddenly attractive) and governments are withdrawing their stimulus measures, cryptocurrencies have shown little value beyond the “hopium” that investors can convince others to charge them a higher price. “
Some experts have argued that smaller “altcoins” could lose up to 90 percent of their value, while multimillion-dollar investors scorned the crash.
Warren Buffett, a longtime cryptocurrency critic, again criticized bitcoin as “not worth it,” while Bill Gates said in an online question and answer that he only liked to “invest in things that have a valuable production “.
“The value of companies is based on how they make great products,” he wrote in a Reddit thread Ask Me Anything.
“The value of cryptography is just what another person decides that someone else will pay for it, so it doesn’t add to society like other investments.”
But some crypto issues insist they are there in the long run.
Said Russian-born crypto-entrepreneur Sergei Sergienko 60 minutes he had lost about $ 600 million in the crash.
“On paper, yes,” he said.
“Put it this way: There was a week in February when I was a billionaire on paper. [My portfolio is now] a third of what it was or something. ”
He added: “She’s a bitch, but you know I believe with all my heart that we’re still at the beginning of the journey.”
“Crypto Winter”
Last week, U.S. regulators announced that they were suing the Gemini Trust cryptocurrency exchange, led by Cameron and Tyler Winklevoss, for giving misleading answers in 2017 about a bitcoin project.
The Commodity Futures Trading Commission lawsuit filed in federal court in New York accuses Gemini of not being sincere about how easy it would be to manipulate a proposed bitcoin futures project at the time, the agency said in a statement.
The futures contract was launched in late 2017 and stopped trading two years later, according to Gemini blog posts and an associate.
Making false or misleading statements to the commission undermines its work to protect market participants, prevent price manipulation and promote fair competition, Acting Compliance Director Gretchen Lowe said in a statement.
“This enforcement action sends a strong message that the Commission will act to safeguard the integrity of the market oversight process,” Lowe said.
The US agency is seeking financial sanctions, the surrender of any illegally obtained profits and a court order banning Gemini from such behavior in the future, he said.
Gemini defended her story when asked about the dress.
“We have an eight-year history of asking for permission, not forgiveness and always doing the right thing,” he told AFP.
“We hope to prove it definitively in court.”
Cameron and Tyler Winklevoss, Mark Zuckerberg’s Harvard classmates, who sued him over allegations that he had stolen their Facebook idea, started and ran a New York-based Gemini.
The brothers told Gemini employees on Thursday that about 10 percent of them were being laid off as staff are prepared to endure a “cryptographic winter” that could persist for some time, according to a copy of the email posted online by the company.
“The cryptographic revolution is underway and its impact will continue to be profound, but its trajectory has been anything but gradual or predictable,” the brothers said.
The industry is in a “contraction phase” that is settling into a period of stasis, which our industry refers to as a “cryptographic winter” aggravated by macroeconomic and geopolitical confusion, they added.
—With AFP