The value of most cryptocurrencies have plummeted in recent weeks, wiping out billions of dollars of wealth.
And instead of mostly harming cryptocurrency enthusiasts, like previous crashes have, the impact was felt widely.
Cryptocurrencies have seen their popularity skyrocket during the pandemic, pulling in countless celebrity endorsements and being integrated into more asset portfolios.
Cryptocurrency and blockchain based tech like nonfungible tokens (NFTs) are now showing up everywhere from late-night talk shows to Matt Damon commercials. Athletes like Odell Beckham Jr. and mayors like New York’s Eric Adams (D) have even chosen to have their salary converted into cryptocurrency.
While banks and brokers once scorned cryptocurrencies, a growing number of them now offer purchasing and custody services. The boom has also helped propel several start-ups, including Robinhood, to new prominence and has even pushed some blockchain-centric firms to seek national banking licenses.
That has made the price drops of the last week, where both bitcoin and ethereum plunged over 40 percent from their highs, all the more damaging.
With tax filing season underway, many investors in the red are bracing for massive tax bills on winnings they may no longer have.
“One of the main misconceptions of crypto is that people think that it’s anonymous, so, therefore, regulators have no way of knowing what you’re doing in the crypto space. But that’s not reality,” said Shehan Chandrasekera, a…
