Last week cryptocurrency exchange FTX filed for bankruptcy. As of yesterday there now appears to be a bank run on Crypto.com, another exchange. This comes on the heels of a decline of cryptocurrency values.
Why it Matters
A year ago cryptocurrency seemed to be having a moment. Exchanges were profitable and went public. Everyone seemed to be buying and making money in cryptocurrency. Now many folks who put their money into it are left holding the bag. Meanwhile the tech industry might begin to shift its focus to other technologies.
By the Numbers
- Bitcoin is down 74% year to date.
- Ethereum is down 73% year to date.
- Solana is down 94% year to date.
Blockchain Is Not Dead
Despite the fall of cryptocurrencies, blockchain and related technologies developed around them are not dead. They will continue to be used in the places it found product-market fit. However for many tech workers it will be an option they can choose instead of something management or policymakers ask them to adopt.