Tim Leung, Boeing Professor of Applied Math and CFRM Director, was featured in a recent Al Jazeera (English) news article “Is Crypto About to Go Extinct?”
This in-depth feature article examines the current state of the crypto market in view of the recent fallout of FTX and the crypto market crash and discusses the future of cryptocurrency. Prof. Leung, who has written research articles on cryptocurrency price dynamics and taught a cryptocurrency course at UW, was interviewed and quoted multiple times throughout the article.
He said that the FTX crash had a profoundly negative impact and warned of spillover effects throughout 2023. In addition, crypto mining companies, which generate virtual money – or coins – using energy-guzzling supercomputers, will suffer too, Prof. Leung said. Reduced demand for coins because of low trading volumes and high energy prices will squeeze the viability of their business model. “I see this phase lasting through 2023,” he said. “It’s more likely to be a crypto ice age rather than a crypto winter.”
Many crypto firms have a footprint across multiple geographical regions. Prof. Leung called for an internationally coordinated effort to design and enforce regulations in the sector. “A global framework to regulate crypto is indeed essential,” he said.
Read the full article on Al Jazeera (English) website.