“The cyclical nature of the digital asset economy is once again fully evident: Throughout the financial year, the crypto ecosystem saw the unravelling of multiple crises, starting with the Luna and Terra implosion earlier in the year, the subsequent blowups of formerly major entities in the space and, ultimately, the demise of FTX and Alameda Research and their affiliated operations. Following the momentous bull market cycle previous to that – 2022 saw investor confidence plummet and an exit of participants and liquidity from the digital asset sector. As market cycle history repeats itself, the previous year and recent partial recovery serves once again as a strong reminder that with such extreme cyclical volatility, complex trading, loans and leverage are a dangerous mix of unnecessary risks when investing in this asset class.
Managing Directors' Report 2022
Managing Directors' Report 2022
Managing Directors' Report 2022
“The cyclical nature of the digital asset economy is once again fully evident: Throughout the financial year, the crypto ecosystem saw the unravelling of multiple crises, starting with the Luna and Terra implosion earlier in the year, the subsequent blowups of formerly major entities in the space and, ultimately, the demise of FTX and Alameda Research and their affiliated operations. Following the momentous bull market cycle previous to that – 2022 saw investor confidence plummet and an exit of participants and liquidity from the digital asset sector. As market cycle history repeats itself, the previous year and recent partial recovery serves once again as a strong reminder that with such extreme cyclical volatility, complex trading, loans and leverage are a dangerous mix of unnecessary risks when investing in this asset class.