Cryptocurrencies have been on a downward spiral in recent weeks as investors lose confidence in digital currencies amid global uncertainty stemming from high inflation, interest rate increases, and the war in Ukraine.
At the forefront of the crypto crash are the two largest cryptocurrencies Bitcoin and Ethereum, both falling to their lowest points in more than a year on Thursday.
Over just a few days last week, the Terra Luna token sunk to virtually zero, from an all-time high of about $119, with its stablecoin Terra USD losing its peg.
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As is the case with any crypto-related conversation, opinions about the digital currency’s future remain divided.
Phunware Inc (NASDAQ:PHUN) chief operating officer Randall Crowder described the current situation as a necessary market correction for the sector. The company operates the cryptocurrencies PhunCoin and PhunToken, which let users monetize their digital identity.
“Crypto is a house of cards built on ego, fraud, confusion and immense promise,” Crowder said.
“Just like the dot-com boom when ‘wantrepreneurs’ either cashed out or flamed out, market corrections like this are important because what emerges are companies like Google, Amazon and Phunware who are accountable to their shareholders and will usher in lasting change to realize innovation’s true potential.”
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Others remain confident in the long-term potential of cryptocurrencies.
Bitcoin mining company CleanSpark Inc (NASDAQ:CLSK) saw its stock price spike by about 20% last week after reporting a four-fold increase in its fiscal 2Q revenue and the continued execution of its infrastructure-first strategy.
CleanSpark executive chairman Matthew Schultz said the timing of the pressure on the overall cryptocurrency mining sector took some focus of the company’s record-breaking quarterly report and strong execution.
“We’re excited that both retail and institutional investors are seeing the quality of our operations and energy-first model as an attractive opportunity to enter into the Bitcoin mining space,” he said.
Schultz is generally optimistic about the state of crypto markets.
“We’re optimistic that the macro headwinds in the entire crypto space are beginning to ease now that the Luna experiment appears to have concluded.”
Contact Angela at angela@proactiveinvestors.com
Follow her on Twitter @AHarmantas
