Crypto was supposed to be the magic investment that would make everyone rich.
In Nigeria, a huge swath of the youthful population jumped on Bitcoin and related coins. The returns were swift at first, then it all crashed, leaving lots of financial casualties.
This week, FTX the Bahamas headquatered crypto exchange almost or has collapsed if latest reports are accurate.
Customers withdrew $6billion in 72 hrs leading to a massive liquidity crunch. This is similar to a bank rush which can collapse any bank.
This information has thrown the global crypto market in a spin.
The consequences of a possible failure of an exchange like FTX would be dire.
Keep an eye on Bitcoin. The price volatility could be negatively severe. It has already dropped 7.6% this week.
Are you a crypto investor? What defensive postures are you taking to safeguard your investment?
Photocredit: Tech Times