The slide in bitcoin and ethereum prices in April, 2022 launched a chain of events that is still playing out. Notably, the terraUSD and luna cryptocurrencies collapsed in May, and their collapse was soon followed by the collapse of Three Arrows Capital, which filed for bankruptcy on July 1. Luna's collapse also created a crisis for Alameda, which is alleged to have shored up its balance sheets with an illicit influx of customer deposits from FTX; Alameda and FTX both filed for bankruptcy on November 11, 2022.
At least some have predicted that luna's collapse would lead to the collapse of multiple other businesses that invest heavily in cryptocurrencies. As one article stated in July, 2022, "“The terraUSD and luna collapse is ground zero,” said [University of Southern California Professor] Bhatia, who published a book last year on digital currencies titled “Layered Money.” He described the meltdown as the first domino to fall in a “long, nightmarish chain of leverage and fraud.”"
The recent downfall of FTX and Alameda, led by Sam Bankman-Fried, may have additional far-reaching consequences, as the fortunes of many crypto companies have been heavily intertwined. Indeed, BlockFi is reported to be preparing to file for bankruptcy, and many are speculating that Genesis Trading and Grayscale may follow soon.
Which crytpo-related companies do you think will file for bankruptcy by the end of the year? Make your forecasts below. Dates of company filings in their respective time zones will be counted for this question.
(Image above from https://twitter.com/business/status/1593277999780077569)
(Image above from https://www.cnbc.com/2022/07/11/how-the-fall-of-three-arrows-or-3ac-dragged-down-crypto-investors.html)
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