High leverage, interconnectedness and the lack of a governance structure triggered the ‘chain’ of bankruptcies in 2022.
The board member believes the world lost faith in crypto in 2022.
Crypto has “fundamental flaws”
Fabio Panetta, a member of the executive board of the European Central Bank (ECB) criticized players in the crypto currency market citing the list of bankruptcies filed in 2022. He claimed that crypto companies would go bankrupt in 2023 as well, suggesting that the 2022 crypto contagion was not over yet.
A long list of companies filed for bankruptcy in 2022. Poor market governance and regulations can be blamed for the failure of companies like FTX, but some companies closed down because of market conditions, which are normal economic reasons.
Mining companies like Compute Northa and Core Scientific filed for bankruptcy in the US after energy prices soared amid the Russia Ukraine war. The impact of rising energy prices was exacerbated by bitcoin’s falling price (m
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