Some of the stories of paper wealth destruction across the crypto space are already astounding e.g. Coinbase Global founder Brian Armstrong has seen his fortune plunge from $13.7bn to $2.3bn. This illustrates that it’s not just the digital currencies themselves that are falling with the largest cryptocurrency exchange Coinbase Global (COIN US) plunging ~85% in just a few months. The maths is simple – the more people who lose money punting cryptos the lower volumes are likely to fall. Plenty of comments are already surfacing on Twitter questioning solvency across the industry, only a few months ago these same keyboard warriors were calling Bitcoin to ++$US100,000.
Even famous investors (The Social Network movie) Tyler and Cameron Winklevoss co-founders of rival crypto exchange Gemini have lost over $US2bn this year, or 40% of their wealth. These moves are delivering another clear message to MM:
Message 2: Easy money whether tulip bulbs or cryptocurrencies have a habit of vanishing as fast as they arrive – this thought should not be forgotten when evaluating new growth stocks in particular.
