Crypto's Riskiest Tokens Plummet to Pandemic-Era Levels

Watch Crypto's Riskiest Tokens Plummet to Pandemic-Era Levels - Bloomberg on Dailymotion

Transcript

00:00The crypto market is still reeling from the massive October crash that wiped out billions

00:04of dollars in liquidations. Both institutional and retail investors remain cautious, many still

00:11absorbing their losses. But this downturn wasn't just about falling prices. It exposed deeper

00:17structural flaws in the market. Some smaller tokens even dropped to almost zero for a while,

00:23showing just how fragile things can get when liquidity dries up. We haven't seen any major

00:28firms publicly blow up yet, but likely a few smaller trading deaths didn't make it through.

00:34And honestly, there might be more fallout to come. For everyday investors, October's crash was a wake

00:40up call. Many are questioning the point of holding small cap tokens that lack real fundamentals or

00:45utility. These coins were not just volatile, but also extremely vulnerable when liquidity disappears.

00:52Meanwhile, attention is shifting elsewhere. In markets like South Korea and China,

00:57traditionally heavy buyers of auto coins. Retail investors are finding the stock market more

01:02exciting and less risky. With fewer active buyers and shaken confidence, crypto could see a slow winter

01:08for smaller coins. Until the market rebuilds trust and better structures, investors may continue to stay

01:14on the sidelines.