(Natural News) More investors are leaving the cryptocurrency industry as the values of crypto assets continue their freefall.
Cryptocurrency fund asset managers saw their investors withdraw $20 billion worth of assets from the crypto industry in November. This accounts for nearly 15 percent of total crypto assets under management (AUM), bringing the collective AUM of crypto fund managers to its lowest point in nearly two years. (Related: Crypto stocks PLUMMET: Industry nearing collapse as financial analysts warn most crypto firms unlikely to survive long-term.)
In comparison, very few small-time investors are leaving the stock market despite losses occurring there as well. This represents a general malaise in the crypto industry, as the collapse of cryptocurrency exchange FTX has “contaminated” the entire industry. But even before FTX’s collapse, the industry was already seeing dire signs.
This summer, two major crypto lenders – Voyager Digital and Celsius Network – filed for bankruptcy. The price of bitcoin, the largest and most valuable crypto asset on the market, has dropped by 75 percent from its peak late last year. Most other major cryptocurrency assets like ether, tether and Binance coin are also dropping.
FTX disaster may have set crypto back by several years
Before its collapse, FTX was a $32 billion cryptocurrency exchange. Its downfall has completely shattered investor confidence in cryptocurrencies, and market analysts are still trying to figure out the extent of the damage it has caused.
Some investors, like Stephen Jones, were lucky and got out in the nick of time. Jones has been buying crypto for nearly 10 years. He experiences some victories, especially last year during cryptocurrency’s high-water mark. But he started having doubts this year and has been selling out of his positions since crypto values began their downturn.
Jones cashed out his remaining holdings in October – right before the FTX collapse – and he was relieved that he had already dumped all of his crypto assets before the most recent downturn.
“[FTX] definitely opened my eyes a little, but said Jones. “I’m not really seeing as much value-added activity as was initially promised.”
Unfortunately, not everyone is as lucky as Jones. Dennis Drent, a former executive at a pet insurance company, started investing in crypto last December, when the industry’s outlooks were almost entirely positive. He poured about $25,000 into a bitcoin trust with the approval of his financial adviser.
By May, Drent had cashed out, taking about a 50 percent loss. He now believes he should have known at the time that he needed to avoid that market. “I wasn’t cautious enough,” he said.
Nick Torrico, 26, had about $10,000 in bitcoin, ether and VeChain at Voyager Digital when it filed for bankruptcy in July. He doesn’t know if he will see all – or even most – of that money again.
Fortunately, Torrico has some other investments to fall back on. He has diversified his holdings and refused to pour all of his money into crypto. He holds more cash in his investment account and has made some lucky stock trades.
If there is an upside to this crisis, Torrico noted that the FTX crisis revealed how many fraudulent entrepreneurs are involved in crypto.
“A lot of bad actors have been exposed,” he said. “My biggest lesson is to be patient and not try to make fast money.”
Learn more about the collapse of the crypto industry at CryptoCult.news.
Watch this episode of the “Health Ranger Report” as Mike Adams, the Health Ranger, talks to John Perez, the Crypto Nostradamus, regarding the details of the fallout from crypto’s crash and what’s coming next for the industry.
This video is from the Health Ranger Report channel on Brighteon.com.
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Crypto expert: FTX collapse marks end of “cryptographic scam” that involves worthless crypto coins gaining immense value.
Democrats SCRAMBLING to hide evidence linking them to former FTX CEO Sam Bankman-Fried.
Crypto Nostradamus John Perez: Cryptocurrency scam is THE SCAM of the century.
Health Ranger Report: John Perez highlights the importance of having silver and gold as crypto collapses.