Bitcoin news – latest: Crypto prices collapse with Tether latest ‘stablecoin’ to suffer

Do Kwon, the founder of the Luna cryptocurrency, has a history of mocking people for not investing in his coin.

Luna has recently dropped nearly the entirity of its value, dropping below $1 on Wednesday having peaked close to $120 last month

In the wake of cryptocurrencies’ falling price, traders are increasingly treating them like just another speculative tech investment, the New York Times reports.

“It delegitimizes the argument that Bitcoin is like gold,” said Vetle Lunde, an analyst for Arcane. “Evidence points in favor of Bitcoin just being a risk asset.”

In little over a decade, Bitcoin has risen from a fringe technology popular with cryptographers, to the world’s ninth most valuable asset by market cap.

The cryptocurrency’s dramatic ascent has created millionaires, reimagined money and launched a multi-billion dollar industry inspired by its revolutionary decentralised technology.

But it has also brought with it some unwanted side effects, writes Anthony Cuthbertson.

Here’s our latest wrap on what is happening in cryptocurrencies. In short: a lot of bad.

Those same negative fortunes are being seen across tech stocks, too. As such, cryptocurrency seems to be suffering both from new poor sentiment about digital coins in general, but also a worrying economic picture.

“Because custodially held crypto assets may be considered to be the property of a bankruptcy estate, in the event of a bankruptcy, the crypto assets we hold in custody on behalf of our customers could be subject to bankruptcy proceedings and such customers could be treated as our general unsecured creditors”, the warning states.

This is a statement Coinbase needed to make because of a requirement made by the US Securities and Exchange Commission, which said these disclosures are necessary so customers are informed about their investments.

Founder and chief executive of Coinbase Brian Armstrong took to Twitter to reassure customers that the company was not at risk of bankruptcy.

“Your funds are safe at Coinbase, just as they’ve always been”, he wrote.