Digital Natural Selection

Just as the recent slide in crypto and tech stocks has put pressure on investors, it is also testing the business models of tech businesses across the board.

When the system is flush with cash it's much easier for entrepreneurs and investors to test ideas, but when the money starts tightening up, market prices fall, and business models start getting tested.

On Monday evening, the main team responsible for developing Ethereum Classic (a spinoff of Ethereum) announced that they will be closing operations. This follows announcements from the crypto social site Steemit and the adult entertainment site Spankchain that they will be laying off a large portion of their staff.

For the FAANG stocks, the recent tech rout is currently putting pressure on Wall Street's perennial darlings to start delivering on great expectations.

Fear not though. This new age version of Darwin's 'survival of the fittest' theory is a natural part of economic cycles and development and can actually provide great opportunities for those brave enough to take a contrarian view.

Today's Highlights

  • Closed for Bush
  • Sudden Stock Plunge
  • Crypto Air BNB

Traditional Markets

Today many financial markets will be closed to honor the passing of former US President George Bush Senior. As this was a rather last minute decision, we've added the following update to our market hours page. However, be aware that other assets could be affected due to lack of liquidity.

(Click on image to enlarge)

This unforeseen closure also seemed to have an impact on the stock markets yesterday as some investors may have been trying to reduce exposure before the hiatus.

Still, there's no way to know for sure whether these losses were down to the Bush-related downtime ahead or for different reasons. Other catalysts like the trade war and yield curve inversion were also blamed for the sudden plunge yesterday (purple circle), which saw the major US indices down more than 3% by the end of the session.

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Disclaimer: This content is for information and educational purposes only and should not be considered investment advice or an investment recommendation. Past performance is not an indication of ...

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