Investors are currently muddling through a crypto winter, that has depressed both the value of digital assets and the wider technology sector.
Many believe it was the November collapse of exchange FTX that marked the turning of the weather for the market.
FTX’s Sam Bankman-Fried denies criminal charges and claims he did not defraud investors. Billions of dollars in FTX customer deposits are missing after the company allegedly used them to support Bankman-Fried’s Alameda Research hedge fund. The fallout from the scandal has rocked the financial world beyond crypto, with his political contributions and sports sponsorships also in the spotlight.
However, how would investors even know what to look for when it comes to crypto? So much of the sector seems opaque and confusing. Many names come and go and the jargon can be suffocating.
In a conversation with me at Davos this year, Michael Gronager, chief executive and co-founder of Chainalysis, a company that tracks the billions of transactions on the blockchains where digital assets are traded, unpicked how the crypto winter actually came about. “What happened in the beginning of 2022, was that the interest rates started to go up, tech stocks started to fall and the same happened for the cryptocurrencies,” he explained.
Then in May, when the Terra stable coin network collapsed it triggered the failure of 3 Arrows Capital and crypto lender Celsius.
According to Mr Gronager that meant $50 billion in realised losses for the industry.
“Then, fast forward to FTX. That was $10 billion realised losses. So if you look at it as just from the data, what happened in this part of finance that was called crypto, then you would say the big event was in the spring and not in the fall, and the fall was like a shock wave breaking out,” he said.
A good analogy of what happened in crypto is to think of FTX as the equivalent of the Lehman Bros failure in September 2008 while the collapse of the other crypto companies preceding FTX were like investment bank Bear Stearns’ failing in March 2008.
During the financial crisis 15 years ago, Bear Stearns’ collapse didn’t necessarily fully alert us all to the bigger risks we were facing but they were there. It is the same case with crypto.
Few understood the significance of what had happened in the first half of the year and it took FTX and Sam Bankman-Fried, who had a very high profile, to be involved before a broader swathe of investors began to take notice of the downturn in crypto markets.
The irony of all the FTX collapse is that the promise of blockchain technology is a mix of radical transparency allied to security
“Everyone knew Sam and he built a brand that a lot of people had attached to their brand. So that meant that it hurt more,” said Mr Gronager.
However, investors should have been applying more scrutiny well before FTX’s collapse as the earlier failures began the spiral for Mr Bankman-Fried’s company, according to Mr Gronager.
“Some of the investments that FTX had done in the industry were in companies that were even more leveraged. And suddenly they lost money. When you lose money, then you have a tendency that 'I want to win them back',” Mr Gronager said.
A CoinDesk article in early November was the catalyst for the spotlight finally moving to FTX. The article highlighted the reliance on FTX’s own FTT digital token.
“The industry now starts to look at [FTX] and says, 'Hey, the emperor doesn't have any clothes on'… And suddenly, you know, everyone looks at it, start to talk about it. There's a little bit of fight maybe on Twitter between [rival Binance CEO] CZ and Sam and CZ can also see like, according to his fiduciary responsibility for the company, he cannot hold the [FTT tokens] that everyone on the internet says is worthless. So he's like, 'I want to sell' and everyone wants to sell [and] now it’s worthless.”
The irony of all the FTX collapse is that the promise of blockchain technology is a mix of radical transparency allied to security. Yet being able to see something isn’t the same thing as being able to understand the information in front of you. Most investors do not have the capacity to follow the numbers and letters that mark the typical blockchain transaction.
They could have seen the crypto crisis coming if they knew what to look for.
Yet an even bigger truth is 10 years ago the sector didn’t exist. We are all learning about crypto as we go. These are expensive lessons.
Perhaps investors would be better off rethinking the idea of backing assets they have only a basic grasp of, rather than be on the hunt for the market's signal for when they might invest again.
SERIES SCHEDULE
First Test, Galle International Stadium
July 26-30
Second Test, Sinhalese Sports Club Ground
August 3-7
Third Test, Pallekele International Stadium
August 12-16
First ODI, Rangiri Dambulla Stadium
August 20
Second ODI, Pallekele International Stadium
August 24
Third ODI, Pallekele International Stadium
August 27
Fourth ODI, R Premadasa Stadium
August 31
Fifth ODI, R Premadasa Stadium
September 3
T20, R Premadasa Stadium
September 6
COMPANY%20PROFILE
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Mumbai Indians 213/6 (20 ov)
Royal Challengers Bangalore 167/8 (20 ov)
What is Reform?
Reform is a right-wing, populist party led by Nigel Farage, a former MEP who won a seat in the House of Commons last year at his eighth attempt and a prominent figure in the campaign for the UK to leave the European Union.
It was founded in 2018 and originally called the Brexit Party.
Many of its members previously belonged to UKIP or the mainstream Conservatives.
After Brexit took place, the party focused on the reformation of British democracy.
Former Tory deputy chairman Lee Anderson became its first MP after defecting in March 2024.
The party gained support from Elon Musk, and had hoped the tech billionaire would make a £100m donation. However, Mr Musk changed his mind and called for Mr Farage to step down as leader in a row involving the US tycoon's support for far-right figurehead Tommy Robinson who is in prison for contempt of court.
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Various Artists
Habibi Funk: An Eclectic Selection Of Music From The Arab World (Habibi Funk)
THREE POSSIBLE REPLACEMENTS
Khalfan Mubarak
The Al Jazira playmaker has for some time been tipped for stardom within UAE football, with Quique Sanchez Flores, his former manager at Al Ahli, once labelling him a “genius”. He was only 17. Now 23, Mubarak has developed into a crafty supplier of chances, evidenced by his seven assists in six league matches this season. Still to display his class at international level, though.
Rayan Yaslam
The Al Ain attacking midfielder has become a regular starter for his club in the past 15 months. Yaslam, 23, is a tidy and intelligent player, technically proficient with an eye for opening up defences. Developed while alongside Abdulrahman in the Al Ain first-team and has progressed well since manager Zoran Mamic’s arrival. However, made his UAE debut only last December.
Ismail Matar
The Al Wahda forward is revered by teammates and a key contributor to the squad. At 35, his best days are behind him, but Matar is incredibly experienced and an example to his colleagues. His ability to cope with tournament football is a concern, though, despite Matar beginning the season well. Not a like-for-like replacement, although the system could be adjusted to suit.
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
MATCH INFO
RB Leipzig 2 (Klostermann 24', Schick 68')
Hertha Berlin 2 (Grujic 9', Piatek 82' pen)
Man of the match Matheus Cunha (Hertha Berlin
In The Heights
Directed by: Jon M. Chu
Stars: Anthony Ramos, Lin-Manual Miranda
Rating: ****
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
UAE currency: the story behind the money in your pockets
Our legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059
Best Foreign Language Film nominees
Capernaum (Lebanon)
Cold War (Poland)
Never Look Away (Germany)
Roma (Mexico)
Shoplifters (Japan)
EMILY%20IN%20PARIS%3A%20SEASON%203
%3Cp%3ECreated%20by%3A%20Darren%20Star%3C%2Fp%3E%0A%3Cp%3EStarring%3A%20Lily%20Collins%2C%20Philippine%20Leroy-Beaulieu%2C%20Ashley%20Park%3C%2Fp%3E%0A%3Cp%3ERating%3A%202.75%2F5%3C%2Fp%3E%0A
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
BORDERLANDS
Starring: Cate Blanchett, Kevin Hart, Jamie Lee Curtis
Director: Eli Roth
Rating: 0/5
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part one: how cars came to the UAE
ANDROID%20VERSION%20NAMES%2C%20IN%20ORDER
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Winners
Ballon d’Or (Men’s)
Ousmane Dembélé (Paris Saint-Germain / France)
Ballon d’Or Féminin (Women’s)
Aitana Bonmatí (Barcelona / Spain)
Kopa Trophy (Best player under 21 – Men’s)
Lamine Yamal (Barcelona / Spain)
Best Young Women’s Player
Vicky López (Barcelona / Spain)
Yashin Trophy (Best Goalkeeper – Men’s)
Gianluigi Donnarumma (Paris Saint-Germain and Manchester City / Italy)
Best Women’s Goalkeeper
Hannah Hampton (England / Aston Villa and Chelsea)
Men’s Coach of the Year
Luis Enrique (Paris Saint-Germain)
Women’s Coach of the Year
Sarina Wiegman (England)
The biog
Age: 23
Occupation: Founder of the Studio, formerly an analyst at Cleveland Clinic Abu Dhabi
Education: Bachelor of science in industrial engineering
Favourite hobby: playing the piano
Favourite quote: "There is a key to every door and a dawn to every dark night"
Family: Married and with a daughter
MATCH INFO
Euro 2020 qualifier
Fixture: Liechtenstein v Italy, Tuesday, 10.45pm (UAE)
TV: Match is shown on BeIN Sports
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
The biog
Title: General Practitioner with a speciality in cardiology
Previous jobs: Worked in well-known hospitals Jaslok and Breach Candy in Mumbai, India
Education: Medical degree from the Government Medical College in Nagpur
How it all began: opened his first clinic in Ajman in 1993
Family: a 90-year-old mother, wife and two daughters
Remembers a time when medicines from India were purchased per kilo
SM Town Live is on Friday, April 6 at Autism Rocks Arena, Dubai. Tickets are Dh375 at www.platinumlist.net
