It's been more than a week since Bitcoin rose to around $35,000, but so far the cryptocurrency has held on to its recent gains despite weakness in the broader tech sector. . The bullish tone is fueled by the impending launch of an ETF expected to inject billions of dollars of new money into the crypto market, and the destruction by Sam Bankman Freed (who will likely see this issue in court). This is driven by newfound optimism in the industry in the wake of the pandemic, which is likely to come to an end. Week—go back in time. In short, the good times are back.
If a new cryptocurrency boom is indeed occurring, there is a high possibility that a new wave of speculative investment will occur as people seek out new and hot things. It's also a test to see if the crypto industry has learned anything from the last boom-bust cycle, when Bitcoin soared to nearly $70,000 and ushered in innovations like NFTs and DeFi. There was also the rise of charlatans like Freed. Terra's Do Kwon and Celsius' Alex Mashinsky.
The widespread fraud associated with the 2021 bull market could provide valuable lessons if the industry pays attention to it. The biggest one is the need to be skeptical when it comes to leaders. Much of the last disaster occurred because people didn't demand to see their companies' financial numbers and believed that people like Bankman Fried and Kwon were geniuses. Trust but verify and all that stuff.
A further lesson from the last boom is that crypto entrepreneurs must build products that a wide consumer base will want to use. The cryptocurrency industry needs founders willing to put in the hard work of finding product-market fit, rather than just dumping useless tokens onto the market to get rich and party at conferences. . For cryptocurrencies to really take off, they need to become as accessible to ordinary consumers as the social media and online banking tools they use every day.
The final test of whether the cryptocurrency industry has learned from the past comes in the form of attitude. In the past, too many blockchain believers have gotten into petty quarrels with rival crypto projects, or blown away skeptics with the tempting phrase “stay poor and have fun” and get nasty. I've been acting like him. Drama and quirkiness have always been part of cryptocurrencies, and it's part of the fun, but the days of crypto natives acting like adults to both regulators and investors are long gone.
It is too early to tell whether the current boom is the beginning of a new breakthrough that will usher in a new era for cryptocurrencies. But if crypto veterans want to show that the bull market is real, they'll need to show that they're not only older, but wiser.
jeff john roberts
jeff.roberts@fortune.com
@jeffjohnroberts
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Sam Bankman FreedHe, who will be cross-examined on Monday, testified that he was too busy supervising subordinates like his ex-girlfriend, who he blamed for much of FTX's collapse. (luck)
winklevies gemini sued as bankrupt Book of Genesis This is to prevent Gemini Ahn from selling its GBTC stock, which has soared on recent ETF news, to repay creditors other than Gemini Earn. (bloomberg)
new profile of Terra Founder Do KwonIn his final days on the run, he wrote that he had fled Montenegro after stumbling upon a Europol notice and that he had named his daughter after Luna, one of the Ponzi coins. (WSJ)
crypto sector India is expected to rise Bitcoin This prompted the government to amend the fracking tax that pushed 95% of trading volume to offshore platforms. (bloomberg)
Sam Bankman Freed He said, “I don't want to be that person.” kansas city royals of virtual currency exchanges,” while explaining his sports marketing strategy.WSJ)
meme-o-the-moment
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