• Crypto markets are once again in turmoil. Bitcoin is down around 45 % and ether around 55 % over the past six months. Extreme, but not unprecedented. Watch the BBC interview Bitcoin volatility is structural. Crypto markets are prone to violent crashes and spikes because major exchanges combine trading, market-making, and clearing. During downturns, this creates highly pro-cyclical mass liquidations into falling markets. Reported liquidation figures are only one trade per second, so they...

Self-regulated crypto exchanges need to prove their solvency using stress tests for capital adequacy, not a proof of reserves. Shortly...

One of my favourite journalists (Ryan Browne, CNBC) sent me some questions which were precipitated by his reading of this article. There...