- Renowned blockchain critic Molly White recently highlighted the resurgence of speculative mania in the crypto market, despite its new veneer of normalcy.
- White argues that despite the industry’s reputational makeover, it remains riddled with manipulation and scams.
- She calls for more stringent enforcement and regulation to protect investors and limit potential financial contagion.
In a recent Bloomberg article, Molly White, a prominent critic of blockchain and cryptocurrency, sheds light on the ongoing speculative mania in the crypto market and calls for more stringent regulation.
The Resurgence of Speculative Mania in Crypto Market
Molly White points out that the crypto market has once again entered a period of speculative mania, with Bitcoin prices surging and venture capital firms investing heavily in cryptocurrency startups. However, she warns that this resurgence comes with a veneer of normalcy that may not reflect the true nature of the industry.
Crypto Market Manipulation and Scams
Despite the industry’s efforts to present cryptocurrencies as a legitimate new asset class, White argues that the market remains fraught with manipulation and scams. She alleges that there is still rampant market manipulation on crypto exchanges, with a relatively small number of large holders artificially propping up prices.
Crypto’s Dependence on Storytelling
White also highlights that crypto relies heavily on storytelling, as the underlying technology lacks practical applications for the average person’s daily life. The narratives surrounding crypto have shifted over the years, with the industry now latching onto the AI trend, promising to use blockchains alongside AI models to address various issues despite blockchain systems’ inherent inefficiencies and limitations.
Call for More Stringent Regulation
As the specter of a new crypto mania looms, White argues that it is far past time to consider new solutions to the familiar downside. She calls for thoughtful, carefully crafted regulation to protect investors and limit the contagion any future crypto disasters can transmit to the rest of the financial world.
Conclusion
White concludes by emphasizing the need for more stringent enforcement and regulation to protect investors. She also calls upon industry leaders to hold one another accountable and support models of government regulation that require rigorous outside scrutiny.
