First of all, it is necessary to underline that the domino that drove the fall of the main cryptocurrencies began with the rate hike arranged by the United States Federal Reserve. All risk assets – including high-yield bonds and technology stocks – succumbed.
However, the volatility of the crypto world, already known, showed its worst face: the stablecoins they did not honor their name and exposed that its peg to the dollar may be extremely fragile. Although it would be unfair to generalize – Tether and Binance USD did not have crashes like Luna and UST – the inevitable lesson of the crash is that some of the mechanisms that support the value of cryptocurrencies need to be closely watched if not outright reformulated.
The instability of stablecoins it is a disappointing page in the young history of cryptocurrencies but not its definitive chapter. The question hanging in the air is whether the entire ecosystem can function tied to the logic of mathematics in pure gold, that is, based exclusively on the perception of the people and not on elements that give currency real validity.
A second question that appears after the storm is the idea of regulation. All experts agree that the background of this crisis is the absence of any kind of rules. In just a few days, many investors went from the feeling of autonomy to the panic of helplessness and solid players in the system, such as the platform coinbaseadmitted that their terms of use had not been clearly communicated to its thousands of users.
In this context,
Although it is impossible to predict what specific forms regulation will take, the crash marks the beginning of a new chapter. Rather than fear him, crypto ecosystem enthusiasts should welcome him and watch the full movie before the photo. 13 years ago 10,000 bitcoins paid for a pizza and today that figure is equivalent to just under 300 million dollars. The data seems anecdotal but it is significant with respect to the long-term trend.
The scenario after the “crypto winter” makes it clear that digital currencies need to turn the page. Regardless of the type and tone that future regulations acquire, it is clear that the volatility of a currency can only be counteracted with backing. That is why we are seeing a new generation of cryptocurrencies that do not depend on a perceived value -like traditional ones- but on real assets that generate value.