That all changes in 2022. The collapse of high-profile cryptocurrency exchanges and hedge funds has triggered arguably the industry’s biggest crisis of confidence to date. By the end of the year, more than $2 trillion in cryptocurrency market capitalization had been wiped out, leaving many investors severely damaged.
Investors relying on centralized exchanges should exercise due diligence. A good starting point is to check whether an exchange is licensed in a reputable financial center, as this may provide clues about its creditworthiness and ability to protect investors’ assets.
The influx of talent and money it brings will surely mark the return of cryptocurrencies.
