Last week we compared the current Crypto craze to the silver mania in spring of 2011 and the dot.com era (here is an entertaining article from Business Insider with a little ‘where are they now?’ clown show).
Now the Wall Street Journal notes the likes of Paris Hilton tweeting about a coin offering. Ding ding ding…
And then there is this classic bit by a young “true believer” (absolutely necessary to any bubble)…
Such wild rides haven’t shaken true believers’ faith. Over the past year, Jake Vartanian started a consulting business helping firms launch coin offerings—and gets paid in the newly created tokens. The 24-year-old said that except for exchanging some tokens to pay contractors who won’t take them, he still holds about 85% of the coins he has accrued.
“We’re really reinventing the stock market,” he said.
Mr. Vartanian said he is just waiting for the inevitable arrival of traditional investors. When that happens, he said, “younger people like myself will be the ones who benefit the most.”
Currently, the coin offering market is like a fire building on itself, with each new offering creating a new crop of winners, said Virtual Capital’s Mr. Mougayar. Very few coins have any real metrics upon which to base a valuation, he noted, and at some point there will be a significant pullback.
“They’re all probably 10 times overvalued, but who cares?” he said. “Relative to each other, it’s not so bad.”
During the dot.com bubble I really think Mary Meeker and… who was that handsome young man from Merrill Lynch? You know the guy. He was very publicly bullish and later very publicly remorseful (before scoring a gig on Yahoo news). Anyway, I think they were true believers amplified by our friends in the mainstream media.
On Friday, one day after our original post, the Bitcoin Investment Trust took a 20% haircut. This brainiac tweeted thusly on Sunday.
Perfect… is it a top? Maybe, maybe not. But you know the drill…
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