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Crypto winter comes to Miami - YouTube
Channel: CNBC Television
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it has also been a bad week for crypto
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bitcoin has lost about a quarter of its
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value get this since monday overall the
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crypto market has lost nearly two
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trillion dollars in market value since
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last november that's according to coin
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market cap one city feeling the chill of
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the crypto winter is miami the mayor
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there has billed the city as the crypto
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capital of the world last august miami
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launched its own digital currency miami
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coin but since then it's collapsed as of
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tonight it's essentially worthless in
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miami here's cnbc's kate rooney
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the city of miami road crypto's bull
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market up to an all-time high and is
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being put to the test during the crash
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one of the worst performers of this
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crumbling crypto market miami coin the
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city's namesake cryptocurrency down
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about 95 since launching worth a
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fraction of a penny this week miami's
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mayor francis suarez a vocal industry
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advocate even takes his salary in
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bitcoin he once talked about this
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so-called city coin as a potential
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alternative to taxes he says while the
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project did bring a 5 million dollar
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windfall to miami it comes with risks
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these technologies are extremely new and
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so you know they're always speculative
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right and so you know one of the things
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i've always said is look you should
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never invest money on something that you
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don't a believe in or b
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you know there is a possibility you
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could lose that money so it's got to be
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money that you're willing to sort of
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invest in that way miami has been
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looking to lure in top crypto and tech
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talent during the industries boom crypto
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bowl now outside of miami-dade college
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was one symbol of that hype crypto has
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also taken the miami real estate market
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by storm people are paying for luxury
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apartments in digital currencies but
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crypto winter is putting a freeze on
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some of those deals about a month ago
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everything was on track uh lately things
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have slowed down
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what everyone says is instead of
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watching and waiting for an apartment
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they watch and wait for the market then
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there's miami's famous party scene
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nightclub 11 charges at least 50
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thousand dollars for a table and has
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become a hotspot for wealthy crypto
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investors the club tells me it's not
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seen as much crypto spending but it may
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be too soon to tell if that's because of
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the crash or just a seasonal slowdown i
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do think in general
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obviously you know the the world's in a
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little bit of pain right now um so i am
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seeing it i'm not sure if it is going to
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gravitate to the high-end nightlife or
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not yet there are certainly crypto
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investors feeling the pain here in miami
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but many are still holding on to
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optimism people have bet their careers
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on this technology and they see it as a
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decades-long investment kelly kate
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rooney reporting for more analysis on
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the crypto crash cnbc contributor casey
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newton now founder and editor of
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platformer casey good to see you more
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than a trillion dollars in crypto losses
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who's paying the biggest price for that
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right now
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oh man well a lot of people feeling the
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hurt right now um i think when you look
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at some of the the biggest projects
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involved we had the collapse of tara and
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luna those two big stable coins it
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turned out a lot of um or at least a
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small number of hedge funds and spent
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hundreds of millions of dollars
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acquiring large positions in those and
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so we're starting to see some of that
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unwind i think the question is as that
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unravels how many more people and
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companies are going to get caught in its
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wake how do you expect class action
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lawsuits to come from this crash by
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investors who feel burned
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i do because of course some of the
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crypto products that have been sold over
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the past few years are probably
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unregistered securities it's illegal to
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sell those and the sec has sort of been
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warning us the whole time look if things
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go bad you are going to be on the hook
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for some lawsuits so in the early legal
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battles we we haven't seen too much
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progress there but it sure seems likely
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that now that so much money has been
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lost those lawsuits are going to start
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coming
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as many of the much of this gets sort of
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swept away should we expect certain
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coins or nfts to have staying power
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you know it's a great question sometimes
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people talk about blue chip uh nfts you
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know the board ape yacht club i think is
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is sort of the standard bearer there and
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so sure i think that you know those will
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probably be some of the last nfts to
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lose all their value but go ahead and
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look up the trading charts for those
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those haven't been performing too hot as
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well so
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this crypto winter that we may be
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entering seems to have been seems to be
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hurting folks across the board will this
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permanently alienate the young investors
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who believed in this asset class or are
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they still hanging on
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it's a great question you know for a lot
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of these folks there is an absolutely
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religious belief in the power of crypto
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these folks think this is going to be
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the next financial system and they're
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already on twitter bragging about how
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they've already been through three
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crypto winters before this one and
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basically bring it on so uh you know
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we'll see what happens over the next six
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months but i still expect they're going
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to be a lot of people in crypto next
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year well it'll be hard without as much
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fed liquidity as we've had for it to
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make a huge comeback casey thanks
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