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Streaming services might not be the obvious place to start conducting research about cryptoassets and crypto exchanges, but that would be an incomplete view. The recent release of a Netflix original documentary centering around the saga and intrigue that continue to surround QuadrgiaCX has reignited discussion around this topic. As institutional adoption of cryptoassets continues to accelerate, nation-states are actively allocating people and resources to developing sovereign backed crypto, and investors become more comfortable with crypto, QuadrigaCX should continue to be viewed as a cautionary tale.
Investors are no strangers to volatility, and crypto has definitely had its fair share of volatility and headline-driven themes during the last several years. Especially as newer iterations of cryptoassets create complicated and intriguing headlines from tax, valuation, reporting, and custodial perspectives, it can be easy to overlook the fundamentals that underpin this trillion dollar asset class. Non-fungible tokens have achieved sky-high valuations, and decentralized finance continues to deliver outsized returns to investors while also bringing increasing amounts of scrutiny from regulators.
In other words, as crypto continues to mature, become more complicated, and debut flashier applications, investors at all levels should remember the valuable lessons taught through the failure of QuadrigaCX. Let’s take a look at a…
