#ezrazask

[ezrazask]

Crypto Rally is Deceptive

The Bitcoin rally is Deceptive

This article examines the dynamics of cryptos’ price increases and concludes that CryptoWorld’s growth has outstripped the foundation that supports cryptocurrencies, with negative implications for investors. The arguments in this article are based on a new book, “CryptoWorld Narratives: Eight False Narratives that Prop-up Cryptocurrencies,” by Ezra Zask, (t.ly/D33L4) Cryptocurrency Because it…

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Modern Cryptocurrency Portfolio Theory

Modern Cryptocurrency Portfolio Theory

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Modern Cryptocurrency Portfolio Theory

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"Sophisticated" Investors Invest at the Peak of the Tech Bubble

"Much of that investment (in technology start-ups) poured in last year, as the valuations of private start-ups were hitting a peak. Hedge funds, private equity firms, sovereign wealth funds, corporate VCs, and mutual funds between them supplied two-thirds of all the money that went into venture investing globally last year, according to data provider PitchBook." While most of the literature on behavioral finance has focused on individual decisions, it appears that the most sophisticated investors are also prone to the biases and emotions that distort the decisions of the less-knowledgeable investors. https://www.ft.com/content/6395df7e-1bab-4ea1-a7ea-afaa71354fa0

[ezrazask]

Crypto Investors have a "herd-like mentality"

Low-income, young males are the most likely to invest in cryptocurrencies. They tend to exhibit “herd-like behavior,” investing when prices rise and losing money when they decline; typical behavior during financial bubbles. These latecomers are also the least knowledgeable and least able to withstand losses. These investors also follow a “hail Mary” strategy similar to investing in lotteries,…

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Venture Capital Downgrades Tech Company Valuations

The valuations of VC-backed tech companies depend more on the supply of VC capital than on changes in the economics of the companies. The downturn in VC capital has caused a large drop in tech company valuations; as much as 80% for some https://www.ft.com/content/6395df7e-1bab-4ea1-a7ea-afaa71354fa0

[ezrazask]

Venture Capital Valuation of Tech Companies collapse

The valuations of VC-backed tech companies depend more on the supply of VC capital than on changes in the economics of the companies. The downturn in VC capital has caused a large drop in tech company valuations; as much as 80% for some

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FTX Market Manipulation

One of the clearest cases of the need to regulate cryptocurrencies. The manipulation of markets described in the article is reminiscent of the stock market before regulations were put in place to prohibit these practices. https://www.nytimes.com/2023/02/15/technology/ftx-modulo-capital.html?login=smartlock&auth=login-smartlock #cryptocurrencies #digitigalassets #FTX #ezrazask #investments…

[ezrazask]

FTX: Failure of Due Diligence

https://www.ft.com/content/6e912f25-f1b7-4b19-b370-007fbc867246 This close-up look at the breakup of FTX shows so many red flags that we have to ask how Sam Bankman-Fried was able to hoodwink the investment world for so long, especially since many of the red flags were also present in the Madoff Ponzi scheme. It does seem like investors have to re-learn the lessons of previous fiascos every generation.

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UK EU Cryptocurrency Regulation

The development of comprehensive regulation of cryptocurrencies by the UK and the European Union has two consequences: First, it adds legitimacy to cryptocurrency by misleading many investors to mistake this regulation for increased safety in crypto investments. Second, it places increased pressure on the U.S. to develop crypto regulation since crypto exchanges and investors will migrate to locations with these regulations.

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https://www.nytimes.com/2023/02/03/business/dealbook/tech-earnings-cost-cuts.html?smid=url-share

[ezrazask]

Crypto Investors have Herd-Like Mentality

Low-income, young males are the most likely to invest in cryptocurrencies. They tend to exhibit "herd-like behavior," investing when prices rise and losing money when they decline; typical behavior during financial bubbles. These latecomers are also the least knowledgeable and least able to withstand losses. These investors also follow a "hail Mary" strategy similar to investing in lotteries, making a low probability, high reward bet. Another reason given by crypto investors is the poor outlook for attractive returns on stocks and bonds. #investing #money #cryptocurrencies #ezrazask #investing #financialbubbles #investmentstrategies #digitalassets #digitalmoney https://www.jpmorganchase.com/institute/research/financial-markets/dynamics-demographics-us-household-crypto-asset-cryptocurrency-use#infographic-text-version-uniqId1677161899801

[ezrazask]

FTX Market Manipultationi

One of the clearest cases of the need to regulate cryptocurrencies. The manipulation of markets described in the article is reminiscent of the stock market before regulations were put in place to prohibit these practices. https://www.nytimes.com/2023/02/15/technology/ftx-modulo-capital.html?login=smartlock&auth=login-smartlock #cryptocurrencies #digitigalassets #FTX #ezrazask #investments #financialfraud #marketmanipution

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Cryptocurrencies suffer setback

https://www.bloomberg.com/crypto

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FinTech Haphazard Valuations

​https://on.ft.com/3RHadAr

The immense decline in the valuation of FinTech companies, pegged at around 50%, reflects the overly optimistic assessment of the firms' future profitability, especially in the outlook for future revenues. This is a chronic problem in the valuation of newer high-tech companies where little or no performance data exists. The same problem occurred during the dot-com period in the late 1990s. #cryptocurrency #valuations #ezrazask #technology #decisionsdecisions #Fintech #data #cashflow #profits #forecasts