Despite crypto winter, Digital Asset projects are still thriving

Also Interesting

• EMEA-Listed ETF Flash Flows
• Bitcoin ETF
• Sinology

The Digital Assets industry was under pressure through 2022 with Cryptocurrency prices correcting sharply, as tighter global financial conditions impacted capital markets. The Digital Assets ecosystem is certainly used to a great deal of volatility, and the implosions of the third largest stablecoin Terra USD (LUNA), crypto lending platforms Celsius and BlockFi, crypto hedge fund Three Arrows Capital, and cryptocurrency exchange FTX, are making it a hard crypto winter. This reminds us of the dot com bubble where, amid steep user growth [Figure 1], investors gave massive valuations to internet-based business models which were speculative and sometimes fraudulent. Underneath the surface, however, powerful trends are developing, based on underlying blockchain technology, that will ripple through the world of finance and business for many years. For this new ecosystem to reach its potential we believe a clear regulatory framework will be required for Digital Assets, in the same way global regulators stepped in 2008 making traditional finance stronger.