This Crypto Stock Has a Lower Valuation Than Some Meme Coins. Does That Make It a Buy?
Regardless of our grades in our school Physics tests, we can all agree that Newton's law of gravity isn't easy to argue. However, even Newton's genius probably did not imagine that what goes up must come down would also serve in a metaphorical sense.
In 2020 and 2021, investors witnessed unprecedented activity in the markets. Meme stocks were on the rise, social media influencers were pumping crypto coins that had little (if any) utility, and start-ups were raising venture capital by the billions. Perhaps no other industry embodied these elements more so than cryptocurrency.
Market commentators on CNBC and acclaimed investors like Cathie Wood all seemed to be speaking highly of the elusive asset class. However, over the last several weeks, a lot has come to light in the crypto marketplace. The collapse of BlockFi and FTX have crypto skeptics feeling vindicated, while crypto enthusiasts feel left holding the bag. Moreover, rumors are swirling that other cryptocurrency companies, such as Gemini, co-founded by the Bitcoin-touting Winklevoss twins, could be the next to fall.
Source Fool.com
