In The Beginning, There Was Hype
We have been warning about the collapse of COINTED for months (see our files here). It was obvious to anybody with a clear view doing some research and analysis, that the business model of COINTED can only work in an environment with constantly rising crypto-prices. In this respect, it is not surprising that 2016 and 2017 were excellent years for COINTED and all other crypto companies. During this period of crypto-hype, for example, Bitcoin, the leading cryptocurrency, rose from just over US$ 400 to almost US$ 20,000, and investors became greedy and simply wanted to join in the crypto game. FOMO fever spreaded worldwide.
Since December 2017, however, cryptocurrencies have fallen by 70% or more. Regulatory authorities in many countries have intervened, banned business models and enforcement agencies started to take action against the questionable methods of some crypto-companies.
The overall investment climate in the crypto-space has cooled off considerably. Even more so in the ICO environment as cryptographic tokens have lost much more value or failed to deliver the promised returns to their investors. In times of rising crypto prices, the returns of investors could be paid from the newly acquired investors’ funds and the daily price gains. In times of falling crypto-prices and declining investor interest (i.e. the inflow of new money is slowing down), it quickly became evident that the mining and trading business models are not able to yield the targeted and promised returns.
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