Crypto in the middle crossroads.

Dear Hivers

The market value of a few odd tokens and coins is now less than a third of its peak, and many of them are dead. Towards the end of the year, investors were impacted by a string of crashes and collapses that occurred so quickly.

After all, bitcoin, the largest cryptocurrency, is down roughly three-quarters from November of last year.

Not only were the Feds harsh on cryptocurrencies, but their slide also led to the crash of a stablecoin called TerraUSD. This caused a "Lehman moment," when funds and brokers like Celsius and Voyager went out of business. The collapse of Sam Bankman-Fried's FTX exchange last month was the final blow to the cryptocurrency industry.

This month's modest rebound in bitcoin is an artificially induced last hurrah before becoming irrelevant. As retail and institutional investors lose faith in crypto operators, the excesses, uncontrolled lending, and faking of billions of dollars have occurred overwhelmingly within the cryptocurrency ecosystem. The notion that private cryptocurrencies and decentralized finance can operate independently of the conventional banking system at the same time.

It could take months to implement the kind of regulation investors need to feel safe dealing with crypto brokers and exchanges, such as capital adequacy or transparency.
In the meantime, the traditional financial industry may use the cryptocurrency to issue tokenized bonds and stocks next year or even launch additional digital currencies issued by central banks.

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Credit: doze