The Wall Street Journal reports that the stocks of companies that focus on cryptocurrencies are in a nose dive, falling as much as 60 percent this year alone.
The scandal-plagued Coinbase is down a whopping 42 percent so far this year, while Riot Blockchain is down 34 percent over the same period, according to the WSJ. The market value of publicly traded cryptocurrencies fell from $100 billion in November to $40 billion today.
Consumer interest may be waning, with trading volumes falling recently. After all, companies like Coinbase, which is still the number one US company by market cap, rely on transaction fees to make money.
Cryptocurrencies aren't having the same drop, but they are not experiencing the same decline. According to the WSJ, the price of digital currency is down 12 percent this year.
So what is causing the fall in the stock market? It could be related to increased talk of regulation. European Union regulators could soon require firms to reveal transaction details in order to curb money laundering.
The new laws are being fought by cryptocurrencies.
How the new regulatory frameworks will affect the market shares of the firms remains to be seen.
The Wall Street Journal reported that the performance of Cryptocurrencies is worse than the performance of Cryptocurrencies.
Bored Ape Yacht Club donated $1 million in cryptocurrencies to Ukraine.
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