In the last 24-48 hours cryptocurrencies across the entire spectrum have been decimated, and entire life savings have been wiped out for good.
Image Credit: Roy Buri
The price of Bitcoin, Ethereum, BNB, XRP, Cardano, Solana, Terra’s Luna And Avalanche as well as other cryptocurrencies have plummeted, and they can still drop even further due to U.S. inflation fears.
Despite Coinbase’s founder guaranteeing that people’s money was in safe hands - now they risk losing all of their money.
CEO of Coinbase Brian Armstrong tried to ease shareholders’ nerves on Twitter; one post read: 'Your funds are safe at Coinbase, just as they've always been.'
Despite his best efforts to keep Shareholders calm, the company referred to customers as ‘unsecured creditors’ in an SEC filing, that is if Coinbase went pete-tong.
This would mean that customers’ assets are considered to be the property of Coinbase by bankruptcy administrators.
Here are some of the key events surrounding the cryptocurrency meltdown:
Over $200 Billion has been wiped off of the cryptocurrency market.
Bitcoin, the world's first cryptocurrency, has lost roughly 12% of its value.
In the last 24 hours Ethereum has had 20 percent of its value wiped out.
Luna almost lost all of its value in the last 24-48 hours.
Amazon is also going through a rough ride with 30% of its value gone in the last month.
Fears for the global economy are spreading and this contagion has caused cryptocurrency values to sharply decline over the past few days, and one currency has lost 98% of its value - investors are now starting to sell off risky assets.
Traditional investors in tech companies are also being affected by the crash, with Amazon losing up to 30% of its value on the stock market; Tesla is also trading lower than usual.
The FTSE 100 was also down 2.5 per cent yesterday morning after official figures revealed that the UK economy was growing slower than expected in the first quarter - and then going into reverse in the final month. Chancellor Rishi Sunak has also announced that the UK is going into recession at the end of 2022 amid the cost of living crisis that is also affecting the UK at the moment; causing high levels of food and fuel poverty.
The crash has already caused the amount of business conducted with crypto exchanges to plummet, which holds the 'blockchain' ledgers that record transactions, is already dropping heavily.
Even though the outlook is very grim, traders have come out and made fun of the crash; while others are distraught - many have lost their life savings and could potentially lose their homes.