“The key drivers of the crypto craze were interest rates on conventional cash (e.g., bank deposits) going to zero during the pandemic, while at the same time governments poured trillions of dollars of cash into households’ savings accounts in an effort to stimulate greater spending, investment and speculation,” he wrote. Joye said it “beggars belief” that these financial products had been pushed on “naive consumers” with little regulatory protection in place, saying the SEC in the US, the FCA in the UK and ASIC in Australia had been “missing in action”. “As a result of sharply higher inflation and interest rates, the great unregulated cryptocurrency Ponzi scheme has finally started to unravel,” Coolabah Capital founder and Australian Financial Review contributing editor Christopher Joye wrote last month. The extraordinary meltdown led some experts to declare that the crypto bubble has finally popped. Offer ends 31 October, 2022 >Ī PsychoKitty non-fungible token on the NFT marketplace. Stay up to date with the latest in crypto currency on Flash. “The majority of volume, the way the market works, the way pricing is set, it all happens in a completely, literally unregulated environment,” he said. He warned much of the crypto industry had turned into a dangerous cult. Some people do great but more people get absolutely wrecked.” You’d think that was obvious, but people keep hoping there’s a way out and that they’ll get ahead, but it’s always a false hope. There’s a real human cost here and that’s the ordinary people who get scammed. “ we have to think about the real victims, the mums and dads, the grannies who think their retirement should go into crypto. “Everyone loves the siren call of a number going up and they think, here’s my chance,” he said. A renowned crypto sceptic has issued a dire warning for mum-and-dad investors that more pain is coming after the market meltdown.ĭavid Gerard, author of Attack of the 50 Foot Blockchain, told Nine’s 60 Minutes on Sunday he was concerned about the lack of regulation in the industry, where celebrity endorsements from the likes of NBA star LeBron James had created a market full of manipulation, scammers and crooks.
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