Five days of heart attack: how two 'stablecoins' and panic are sinking crypto

Hello people! 😁

I will try to express everything that happened this week in the most summarized way possible...

The world of cryptocurrencies has been in turmoil for weeks, but nothing compared to what is happening now. The capitalization of these digital currencies has sunk, staying at less than half of the price of a year ago, going from 2.3 trillion dollars to 1.18 today.

Although there are some assets that have resisted better than others, the truth is that the most important, such as bitcoin and ethereum, are in free fall and there is no bottom in sight. In the last year, they have lost about a third of their value. A sum of internal and external issues has led to this point. On the one hand, the bad situation of the world economy is evident, with skyrocketing inflation, rising interest rates and the ongoing war in Ukraine. It is something that has caused the general decline in the stock markets, which has especially affected the technological giants. In the last half year, Amazon and Meta have lost about 40% of their share price, while Microsoft and Google have lost about 20%. Only Apple has endured the rate somewhat better (-3%).😵

That is nothing when compared to what has happened to Coinbase on the floor. It is the third cryptocurrency exchange platform ('exchange') by volume of transactions and just a year ago it launched the stock market adventure. At the time this text is written, 80% of its value has been left. As if that were not enough, the company sent a message to its users to warn them that, in case of bankruptcy, the cryptocurrencies that they will have hosted there will not be returned (later they tried to lower their words). Surely, that is not the worst part of what is happening. The most worrying case is that of terra (UST) and luna, two related cryptos. After being among the 10 most used digital currencies, in just one week both have lost more than 99% of their value. That means that what used to be an investment equivalent to about 80 euros today is not even enough to buy a chewing gum.

💪✌️🤙