I think that cryptocurrency is a Ponzi scheme. I wouldn’t touch it with a 10-foot pole.
But speculative METARs might want to know that crypto companies are doing even worse.
**Crypto Stocks Perform Worse Than Cryptocurrencies**
**Coinbase is off 42% so far this year as trading volume sinks; Silvergate Capital, Marathon Digital and Riot Blockchain are down sharply as well**
**By Paul Vigna, The Wall Street Journal, April 19, 2022**
**The cryptocurrency market has been in selloff mode recently even as hundreds of millions of people now trade bitcoin, ether and other digital assets. Bitcoin is down 12% this year. Ether is down 19%. The entire crypto market has fallen about 19%, though prices are off their year lows, according to data from CoinMarketCap.**
**Stocks of publicly traded, crypto-focused companies, however, are doing worse, falling as much as 60% so far this year, according to FactSet. ...The combined market capitalization of crypto companies that trade publicly has fallen to roughly $60 billion from $100 billion in November...** [end quote]
I’m stunned that people gambled so much money on these stocks. The companies earn profits (if any) from processing crypto transactions and keeping the networks alive. If people use less cryptocurrency (which has been the case recently) the companies earn less.
Analysts slashed their estimates of Coinbase’s first-quarter earnings per share from $1.89 in November to 2 cents in April, according to analysts on FactSet.