Adam Hardej

May 12, 2022·Newsletter

Crypto Winter

Crypto Winter

This is a real photo (by Bloomberg) of Coinbase CEO Brian Armstrong looking like a cult leader in front of a giant headshot of himself. I'm not sure when exactly it was taken, but I have a hunch that their market cap at the time was much closer to its euphoric $75B high than the painful $13B it sits at today.

Word on the street - or in the Discord I should say - is that we could be headed for a "Crypto Winter" which is a term for when crypto prices drop significantly and lead to a period of low trading volume. Bitcoin, which was worth more than $65k in November, is currently trading below $30k. That all being said, Coinbase has been making a lot of money for a while now and they're sitting on $6B in cash that should last them through the cold.

Terra on the other hand, which is "programmable money for the internet" - has fallen and it doesn't look like they'll be getting up anytime soon. From trading at a high of $119 in early April, Terra's coin $LUNA - now sits at the seemingly impossible price of $0.008. This collapse has been in response to Terra's "stablecoin" - $USDT - de-pegging this last weekend and free-falling from there.

I personally believe that Coinbase and crypto at large will thrive in the future, but to have seemingly legitimate projects like Terra collapse in a matter of days is definitely a step back for the space and it will take years for trust to be rebuilt. We're still early... now we're also broke - which actually seems to line up.

Click here to check out the full article from Aidan Ryan at The Information.

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