Ezra Zask
Alternative Investments, Investment Management, Hedge Funds, Cryptocurrencies, FinTech, Financial Services Consulting
Friday, February 24, 2023
Thursday, February 23, 2023
Crypto Investors have "herd-like mentality"
Low-income, young males are the most likely to invest in cryptocurrencies. They tend to exhibit "herd-like behavior," investing when prices rise and losing money when they decline; typical behavior during financial bubbles. These latecomers are also the least knowledgeable and least able to withstand losses. These investors also follow a "hail Mary" strategy similar to investing in lotteries, making a low probability, high reward bet. Another reason given by crypto investors is the poor outlook for attractive returns on stocks and bonds. #investing #money #cryptocurrencies #ezrazask #investing #financialbubbles #investmentstrategies #digitalassets #digitalmoney https://www.jpmorganchase.com/institute/research/financial-markets/dynamics-demographics-us-household-crypto-asset-cryptocurrency-use#infographic-text-version-uniqId1677161899801
Tuesday, February 21, 2023
"Crypto Carpet Bombing"
"Crypto Carpet Bombing" by SEC and CFTC following the FTX fiasco in an effort to constrain cryptocurrencies https://www.nytimes.com/2023/02/18/business/crypto-crackdown-regulation.html
Thursday, February 16, 2023
The valuations of VC-backed tech companies depend more on the supply of VC capital than on changes in the economics of the companies. The downturn in VC capital has caused a large drop in tech company valuations; as much as 80% for some https://www.ft.com/content/6395df7e-1bab-4ea1-a7ea-afaa71354fa0
Wednesday, February 15, 2023
FTX MARKET MANIPULATION
One of the clearest cases of the need to regulate cryptocurrencies. The manipulation of markets described in the article is reminiscent of the stock market before regulations were put in place to prohibit these practices.
https://www.nytimes.com/2023/02/15/technology/ftx-modulo-capital.html?login=smartlock&auth=login-smartlock
#cryptocurrencies #digitigalassets #FTX #ezrazask #investments #financialfraud #marketmanipution
Sunday, February 12, 2023
FTX: Failure of Due Diligence
https://www.ft.com/content/6e912f25-f1b7-4b19-b370-007fbc867246
This close-up look at the breakup of FTX shows so many red flags that we have to ask how Sam Bankman-Fried was able to hoodwink the investment world for so long, especially since many of the red flags were also present in the Madoff Ponzi scheme. It does seem like investors have to re-learn the lessons of previous fiascos every generation.
Friday, February 10, 2023
UK Proposed Digital Pound is in Sight
The U.K.'s intent to introduce a digital pound in the coming years is notable for its commitment to giving access to banks, credit cards, and payment systems such as PayPal access to the digital payment system, thus allowing them to compete with the digital pound. The U.K.'s move is a defensive attempt to forestall competition by cryptocurrencies and similar techniques. All major countries face the same threats and are examining the introduction of digital currencies. Paradoxically, cryptocurrencies may yet have a significant impact on the world's payment system, not as a substitute for existing payment systems, but as a spur to the development of national digital currencies.
https://www.ft.com/content/1247a045-6750-45ee-b3a9-f5144d4efb4d