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For a generation of alienated techies cryptos offer one ethos
was its biggest draw. Now panic is spreading across the

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universe. That same ethos is now posing what may be the biggest
threat yet to its survival. Well joining us now is Emily Nichol

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from our crypto team and one of the authors of The Big Take
Emily. Great reporting as always. So tell us more about this

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piece. What do you actually explore in this piece.
We took a look at why this crypto bear market or as it's known

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to people within the industry of winter is slightly different to
those that have come before. The last we saw last about two

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years between 2018 and early 2020. And we're definitely firmly
in that winter's territory now with the way crypto prices are

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forming. But there are a lot of things different this time Covid
last time. And so that's really what we won't seek to look at.

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So why is it important to think about what's different in
crypto. Emily during this route.

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So what's different this time will eventually basically let us
preempts kind of how crypto might look when comes out the other

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side. The things that we looked at specifically are things
they're intrinsic to crypto. So one of the biggest things that

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crypto is heavily reliant on is an industry of leverage. A lot
of traders will up their bets using leverage making riskier

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plays but that also causes contagion across the sector because a
lot of these loans that people will take out they use crypto

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assets to back them.
And then when those crypto prices go down those loans are no

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longer collateralized. They had liquidated. And it's usually
more than one asset that you use. So hundreds of lost the entire

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market all at once. There are a lot of different things. So this
time around that might help the crypto market and this winter.

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One of them being that they are now mostly backed by venture
capital funding or more frequently backed that way rather than

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using their own tokens for theorem. And that means that they
actually have real cash that they can rely on during a downturn

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rather than just you know being at the whim of the crypto market
itself. So what might crypto look like. Emily on the other side

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of this bear market. Well we definitely know that companies are
going to be a lot slimmer.

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We've had quite a few crypto companies say they're going to cut
staff this year. There was a lot of a trend of you know crypto

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companies making headlines because they were slashing that cash
with a fund. Then you have them sign sponsorships with my team

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and then Tom Brady and even Cristiano Ronaldo Finance signed him
last week. So some of that kind of outward spending is going to

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tone down. Staff are going to get laid off. And the people that
we spoke to particularly actually those in B.C. said this is

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really going to be a bit of a seismic change in which companies
have strong business models and which don't.