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The Götterdammerung of Play Money

Behind the crypto crash was a bad case of technological presbyopia.

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EP has paid little attention to the collapse of crypto-mania because, since it has been clear all along that it was a fraud perpetrated on the greedy and gullible by a coterie of tech-savvy young. The so-called crypto currencies were simply unregulated banks, their accounting dubious, their lending practices opaque, their valuations in public markets jacked up to preposterous heights by leverage. As Wall Street Journal columnist Greg Ip wrote Friday, While bankruptcy filings aren’t entirely clear, they describe many of the largest creditors as customers or other crypto-related companies. Crypto companies, in other words, operate in a closed loop, deeply