I'm sure you've probably already heard the news about FTX so I won't cover everything - but there's a few things we might expect, longer-term, from the scandal this week.
- More Regulations: This incident embarrassed a lot of powerful people as well, so the likelihood of more substantial regulations coming down the pipe is now much higher. - Increased Liquidity: Lots of people are pulling money outside of crypto right now, which explains why the prices have dropped so much this week, as a whole. (Especially Solana, which took an outsized hit compared to the rest.) But the money is still there - some will leave, but some will come back...hopefully with better research. It may present an opportunity for smaller alts to grow after the dust settles.
The crypto ecosystem has gone through a few exchange collapses already (ex. Mt. Gox) so crypto itself will still continue to press on. But I fully expect for more stories like these to unfold as we head further into the recession - the money printer has run out of ink, after all.
They can’t stop printing money. They can’t decrease spending and now we gotta print another trillion a year to just service the debt.
RyanTanaka
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@younolikeyounobuy, well that's the thing. They can't print any more without inflation going up, so it's going to catch up to them eventually. We're just starting to see the cracks happening, now.
younolikeyounobuy
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@RyanTanaka, And higher rates will crush economy, so they can only raise rates for a short time to get inflation down a little, then back to zero and more inflation. Only way to deal with debt is massive currency debasement as we’re not going to claim bankruptcy and deficit will continue soaring. We’re screwed
RyanTanaka
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@younolikeyounobuy, eh, we'll see. Long-term, I'm still bullish (this is my 3rd crypto winter so I've been through a few down cycles already). The market needs to get cleaned up of projects like these so the real ones can stand out. Just need to be patient. (Though it is a good time to look at your portfolio very closely to see if what you have will really make the cut.)