Episode
Death of a Crypto Company
29:49
Published: Mon Jul 25 2022
Description
Born in response to the 2008 financial crisis, cryptocurrency was supposed be a form of money that eliminated the traditional gatekeepers who had overseen the tanking of the economy.But a crash in value recently has raised questions about cryptocurrency’s central promise.Guest: David Yaffe-Bellany, a reporter covering cryptocurrencies and fintech for The New York Times.Want more from The Daily? For one big idea on the news each week from our team, subscribe to our newsletter. Background reading: No one wanted to miss out on the cryptocurrency mania. A global industry worth hundreds of billions of dollars rose up practically overnight. Now it is crashing down.Celsius Network was managing more than $20 billion in assets. Last month, it became the latest crypto venture to spiral into a crisis.For more information on today’s episode, visit nytimes.com/thedaily. Transcripts of each episode will be made available by the next workday.
Chapters
Although initially seen as an alternative to traditional financial systems, the decline of cryptocurrencies has aligned with that of the traditional economy.
00:00 - 04:48 (04:48)
Summary
Although initially seen as an alternative to traditional financial systems, the decline of cryptocurrencies has aligned with that of the traditional economy. Crypto's central promise as money outside of the financial system is being increasingly questioned in light of recent events.
EpisodeDeath of a Crypto Company
PodcastThe Daily
Cryptocurrency startups have gained momentum during the pandemic, targeting individuals with FOMO and promoting an alternative to traditional banks.
04:48 - 09:56 (05:07)
Summary
Cryptocurrency startups have gained momentum during the pandemic, targeting individuals with FOMO and promoting an alternative to traditional banks. However, the industry has been criticized for its reliance on hype and fear tactics to attract investors.
EpisodeDeath of a Crypto Company
PodcastThe Daily
The podcast discusses Moshinsky's Ponzi scheme, where he lured investors with promises of big returns and then used the new investments to pay off interest to earlier investors.
09:57 - 15:08 (05:10)
Summary
The podcast discusses Moshinsky's Ponzi scheme, where he lured investors with promises of big returns and then used the new investments to pay off interest to earlier investors. It explores the distrust of major institutions at a time when many people are financially strained.
EpisodeDeath of a Crypto Company
PodcastThe Daily
The recent trend of exuberant growth in the stock market and cryptocurrency has taken a hit due to investors' decreased risk appetite, causing a significant pullback in crypto prices and wiping out nearly $200 billion in wealth overnight.
15:08 - 19:34 (04:25)
Summary
The recent trend of exuberant growth in the stock market and cryptocurrency has taken a hit due to investors' decreased risk appetite, causing a significant pullback in crypto prices and wiping out nearly $200 billion in wealth overnight.
EpisodeDeath of a Crypto Company
PodcastThe Daily
The hype around cryptocurrency has led to many victims of its risky system.
19:35 - 27:22 (07:47)
Summary
The hype around cryptocurrency has led to many victims of its risky system. While acknowledging the issues with mainstream finance, the lack of regulation surrounding cryptocurrency could lead to devastating consequences for its investors.
EpisodeDeath of a Crypto Company
PodcastThe Daily
The day after a deal was made to release millions of tons of grain stuck in Ukraine's blockaded Black Sea ports, Russia launched missiles at a major grain storage point in the port of Odessa, raising doubts about their commitment to honoring the agreement.
27:31 - 29:45 (02:13)
Summary
The day after a deal was made to release millions of tons of grain stuck in Ukraine's blockaded Black Sea ports, Russia launched missiles at a major grain storage point in the port of Odessa, raising doubts about their commitment to honoring the agreement. Meanwhile, the Northeast experiences record-breaking temperatures, causing heat-related deaths and emergencies in major cities such as New York and Philadelphia.