Why Decentralized Crypto Platforms Are Weathering the Crash

by Shai Bernstein and Scott Duke Kominers

December 7, 2022

Yaroslav Danylchenko/Stocksy

Summary.

After hitting record highs towards the end of 2021, the crypto market crashed in 2022. The drop in value was steep: from $2.9 trillion in value in November, 2021 to around $800 billion a year later. And as market value declined, leading crypto lenders and exchanges collapsed, too.

Shai Bernstein is the Marvin Bower Associate Professor in the Entrepreneurial Management Unit at Harvard Business School and a Faculty Research Fellow at the National Bureau of Economic Research (NBER) in both the Corporate Finance group and the Productivity, Innovation, and Entrepreneurship group.

Scott Duke Kominers (@skominers) is a Professor of Business Administration in the Entrepreneurial Management Unit at Harvard Business School; a Faculty Affiliate of the Harvard Department of Economics; and Co-Principal Investigator of the Harvard Crypto, Fintech and Web3 Lab. He is also an a16z crypto Research Partner, and advises a number of companies on marketplace and incentive design. Previously, he was a Junior Fellow at the Harvard Society of Fellows and the inaugural Saieh Family Fellow in Economics at the Becker Friedman Institute. His first book is The Everything Token: How NFTs and Web3 Will Transform the Way We Buy, Sell, and Create.

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Why Decentralized Crypto Platforms Are Weathering the Crash

Summary.

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