Some crypto related companies are facing financial difficulties
(and in certain cases, bankruptcies) as a result of the crypto
winter.
The downturn and steep drop in crypto prices are certainly
reasons why we are seeing an increasing number of distressed crypto
related businesses, but they are no different to any other
traditional business.
All businesses encounter cycles and traditional business
fundamentals still apply. Organisations that will survive are
likely to adapt quickly, implement strategy change, spread risk and
ensure there is sufficient liquidity to survive the bear cycle.
However, some of the recently reported failures show the need
for investors to do their due diligence and for companies to be
more diversified to reduce risk. Each of these companies share a
number of common themes:
