Bloomberg is reporting that there are 12,100 zombie cryptos that haven’t traded for a month. Technically, they are still alive but effecting they are the living dead. This is a dramatic increase over the previous year when there were 3200 zombies.
Why are there so many zombies and how do we make money from it?
One big reason is that the supply of cryptos simply got too big. There are over 64,000 cryptos tracked by Nomics. Does the world need 64,000 cryptos?
A lot of these cryptos were to fund a specific project and perhaps were never supposed to trade in a liquid manner.
But a dramatic increase in the supply of any asset will always create a bear market and that is exactly what we are seeing. There are simply too many cryptos for the crypto market to absorb. We are also seeing Bitcoin and Ethereum gain market share as money that would have gone into other cryptos is going into the most liquid cryptos.
We will see the number of zombie coins double in the coming year as the Crypto Winter continues to bite. More and more coins will "disappear" and the biggest coins will gain more market share.
The crypto winter is far from over. I look for a low below $13,000 on Bitcoin
So how do we make money?
I'm currently short Bitcoin or bitcoin derivatives and making money. You can also short BITQ or go long BITI. These are long and short Bitcoin ETFs. Not great liquidity though.
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