Looks like its dawning on the Powers that Be that a crypto crash could spread contagion throughout the financial system. Moms, start preparing your basements for when your lil’ baggies move back in.
A cryptocurrency crash could have repurcussions well beyond crypto itself. Contagion could spread to the fixed-income market, and then to other financial markets as well.
That’s the investment implication of a new study out of Yale University that began circulating in academic circles earlier this month. Entitled “How the cryptocurrency market is connected to the financial market,” the study was conducted by Sang Rae Kim, a doctoral candidate in Yale’s economics department.
$LUNA crashes 99.99%. Billions and millions lost. Entire net worths gone.
Do Kwon: I’m launching LUNA 2.0
Crypto investors: pic.twitter.com/IiRBC20O90
— 🇨🇭Rob🇨🇭Crypto Coins Crew (@SirRobArtII1) May 26, 2022
Bitcoin gets stuck trading below $30k as crypto suffers another losing week: World’s biggest cryptocurrency is down 28% this month
This doesn’t look like the moon…should’ve stacked the shiny instead, baggies.
TerraUSD crash led to vanished savings and shattered dreams
Crypto baggies, it could be that the sole purpose of your existence is to serve as a warning to others of the consequences of greed, stupidity, and the foolishness of getting caught up in speculative manias.
Investors swept up in the mania for the high-yielding stablecoin thought it would be safe
TerraUSD was touted as a blue-chip cryptocurrency. Now its investors are reeling from painful losses and asking if it was all a get-rich-quick scheme.
A surgeon in Massachusetts can’t stop thinking about how he lost his family’s nest egg. A young Ukrainian considered suicide after losing 90% of his savings. Other investors have given up dreams of starting new businesses or quitting their day jobs.
All of them were swept up in the mania for TerraUSD, whose total value swelled to $18 billion before collapsing earlier this month. The coin’s sudden downfall is a reminder that crypto—which enjoyed a huge bull market last year—is often little more than a casino, with weak regulation and few means of recourse for the losers.