The Cryptocurrency Market Has Quieted Down... Nassim Taleb Says "It's Similar to a Ponzi Scheme"

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] The plummeting cryptocurrency market has calmed down. Although there was a selling spree the previous day, the market is showing little volatility, suggesting that investors are taking a wait-and-see approach. However, negative views have emerged, pointing out that the representative cryptocurrency Bitcoin is akin to financial fraud.

According to the domestic cryptocurrency exchange Upbit, as of 1:06 PM on the 24th, Bitcoin, the leading cryptocurrency, recorded 59.64 million KRW, down 2.05% compared to the previous day. It showed significant volatility, dropping to the 54 million KRW range the day before and then recovering to the 60 million KRW range, but it remained calm on this day.

The decline in altcoins was also gradually decreasing. At the same time, Dogecoin fell 2.37% compared to the previous day, standing at 288 KRW. Dogecoin also plunged to 198 KRW the day before before soaring to 310 KRW. Other kimchi coins issued by domestic developers also showed high volatility, recording nearly a 30% drop the previous day, but on this day, they showed single-digit percentage declines.

The previous day saw a surge in selling to avoid further declines, increasing the trading volume at the four major domestic cryptocurrency exchanges. According to the cryptocurrency market relay site CoinMarketCap, as of 2:47 PM the previous day, Upbit's 24-hour trading volume was $19.3 billion (approximately 21.5677 trillion KRW), up 58.33% from the previous day. Bithumb increased by 76.67%, Korbit by 79.14%, and Coinone by 56.94%. The excessive selling pressure even caused delays in trade execution.

On this day, trading volume decreased. At the same time, Upbit's 24-hour trading volume was $17.2 billion, down 3.93%. Bithumb decreased by 22.69%, Korbit by 24.97%, and Coinone by 10.78%. As volatility decreased, it is interpreted that cryptocurrency market participants are also observing the situation.

Meanwhile, opinions have been raised that Bitcoin resembles an illegal multi-level financial fraud scheme known as a ‘Ponzi scheme.’ On the 23rd (local time), famous economist Nassim Taleb stated in an interview with the U.S. economic media CNBC, “Bitcoin has no relation to inflation and cannot serve as a hedge against loss risk,” adding, “Bitcoin, which cannot function as currency, is close to a Ponzi scheme or similar deception.” In 2019, Taleb had said he preferred gold and Bitcoin over cash, bonds, and stocks. In this interview, he corrected his past statement, saying, “I was fooled at first.”

This content was produced with the assistance of AI translation services.