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Volatility Didn ’ t Kill Crypto . It Changed It .
If anything , there are now more eyes on the world of digital assets after a massive drop in prices and a string of catastrophic failures . By Christopher Robbins
AFTER A sEVERE bOuT OF VOLATILITY AND A string of several spectacular failures in crypto earlier this year , some voices of the traditional financial industry were quick to pronounce these assets dead — but people in the crypto and blockchain business say advisor interest in digital assets is higher than ever .
“ Every time a drawdown occurs , we see the demand for education increase , and in crypto every time it exposes a lack of supply in quality education and information ,” says Jahon Jamali , co-founder of sarson Funds , a crypto asset manager and education provider for financial advisors .
Despite prominent naysayers like economist Nassim Taleb and legendary investor Warren buffett , cryptocurrencies may already have a strong foothold .
For example , they are already being used to provide essential services to underserved and non-banked communities , says ben Richmond , founder of CubE , an AI-powered regulation and compliance research firm . “ Crypto in and of itself is becoming something that is not yet systemic but is very important within mainstream financial markets as well ,” Richmond says . “ As the space matures , we are seeing the rises and the falls , the good and the bad in that world .”
Rough Times
Over the past six months , there have been more falls than rises , more bad than good . In May , Terra , a stablecoin associated with the Luna cryptocurrency , failed , causing a $ 60 billion washout . In subsequent weeks , crypto hedge fund Three Arrows Capital collapsed , causing Celsius Network , a crypto lender , and Voyager Digital , a crypto exchange , to collapse .
“ That ’ s part of what got us into the 2008 financial crisis — who could have ever thought that all of those things could have gone wrong ? Everyone was doing it , everyone was assuring each other that they were solvent ,” says James Niosi , CEO of InvestDEFY , a Canadian firm specializing in digital asset structured products . “ The same thing is happening in crypto .”
Not only did the headlines cosmetically look like the early
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