How Crypto Replayed the 2008 Financial Crisis with David Morris - WBD536

David Morris is the Chief Insights Columnist at CoinDesk. In this
interview, we discuss the contagion that has ripped through the
crypto market, and how it mirrors the worst failings of the 2008
financial crisis. Is regulation required for crypto to protect
people from getting rekt?


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Over the past few months, the crypto industry has experienced a
series of seismic events resulting in yet untold numbers of
retail investors being wiped out. Those to blame are considered
to be, at best, criminally negligent. What the heck happened?


By now, the “I told you so” refrain has long been worn out
amongst groups of Bitcoiners. Unfeasibly high APRs, complex
stablecoin algorithmic pegs, crypto funds attracting huge amounts
of capital - this was background noise that many just cancelled
out by a blanket rejection of the whole sector.


But there were targeted warnings of danger within the altcoin
ecosystem. Those with a keen interest in the sector, who couldn’t
be co-opted, started to investigate the fabulous promises being
offered. They found alarming weaknesses, obvious failings and
ruinous incentives structures. The red flags were hoisted, but,
by this time, too many were caught up in the hysteria to take
notice.


As we start to undertake the autopsy, on what is still
metaphorically a warm body, the obvious questions arise. How did
we as a collective let this happen? How can we stop this from
happening again? Are we in the same position as the banking
sector following the global financial crisis? Do we need
regulations to enforce protections for investors?