Ad Campaigns Claim Cryptocurrency Still Worth Investors’ Time, Money
Today we bring you the complete breakdown of cryptocurrency. This comes from a detailed article written by Rebbeca Ackerman for technologyreview.com of MIT. The lengthy story covers every nook and cranny of what a crypto coin is and whether you should be investing in it.
If you have already invested in cryptocurrency then you already know that, much like the stock market, it has its ups and downs. Ackerman writes that a group that includes currencies like Bitcoin and exchanges such as FTX, Coinbase and Crypto.com are spending big money on ads to remind you to buy cryptocurrency. As the article explains:
“Crypto billboards surround the Bay Area and line LA highways, and you can’t catch a train in NYC without running into an ad for a coin or exchange. A-listers like Gwyneth Paltrow are pushing crypto platforms, and this year’s Super Bowl broadcast was studded with big-budget crypto spots, each trumpeting the opportunity to strike it rich and ‘make history.’ ”
Whether you are in favor of or against the idea of cryptocurrencies, there is so much you must understand on either side of this issue. Blockchains, crypto coins, crypto exchanges and more may all be new terms to you and they should be understood long before you break out your wallet to make a crypto purchase of any kind.
Cryptocurrency investing sustained a major blow when Sam Bankman-Fried made some headlines by mismanaging $8 billion in cryptocurrencies. Then his parents got sued for being a part of his scheme. Bankman-Fried was the founder and former chief executive officer (2019–22) of FTX Trading Ltd., a cryptocurrency exchange that became the second largest of its kind, Closely tied to Alameda Research LLC, a quantitative trading firm Bankman-Fried had cofounded in 2017, the exchange collapsed suddenly in November 2022 when revelations of broad mismanagement at both FTX and Alameda Research led to a run on customer deposits.
You can find the entire SBF story here.
Know the Facts
The term “crypto” has become something of a catch-all for technology that runs on a blockchain. It’s often just referring to cryptocurrencies, like Bitcoin or Ether, but it can also more broadly mean a suite of tokenized web applications collectively referred to as Web3, most of which run on the Ethereum network. Much of it is deeply weird, some of it is potentially promising, and there’s a good bit that seems like little more than a scam. Regardless, crypto attracted more than $30 billion in VC investment last year and has drawn nearly $4 billion this year so far. New crypto funds like former federal prosecutor Katie Haun’s $1.5 billion venture are sprouting up, fresh crypto startups are boasting billion-dollar valuations months after founding, and Paris Hilton has boosted her NFT investments on The Tonight Show.
Even so, the warning “buyer beware” is still apt.
“While consumer crypto still resembles a pioneer town complete with gold panning and snake-oil dealers, the nonconsumer landscape presents a very different picture. Already, businesses such as corporate banking services, pharmaceutical giants, film development companies, and international shipping firms are using blockchains for transparency and efficiency. Such efforts could bring old, slow, and sometimes paper-based processes into the digital age, and even help industries meet new regulatory requirements.”
The financial realities of cryptocurrency are laid out in this story, which predicts continued volatility for consumer products.
read more at technologyreview.com