What's behind the cryptocurrency crash?

Behind the dramatic crash in cryptocurrency prices, there are now five triggers that have contributed to the rout. The current evolving concern is the status of crypto hedge fund Three Arrows Capital (3AC), with a business partner claiming it has used around $1 million of its funds without authorization.

What's wrong with 3AC?

One of the issues with the latest crypto boom is the degree of leverage. And the unwinding is not pretty, especially as 3AC is very interconnected with market makers and liquidity providers. Yesterday Paolo Ardoino, CTO of the largest stablecoin Tether, responded to concerns about the stablecoin’s assets, saying it has no exposure to 3AC.

What is crypto and how does it work?

What is Crypto? Cryptocurrencies are digital tokens that use cryptography for their creation and security. Bitcoin was the first, but thousands more have come. In the past few years, thousands of new cryptocurrencies have appeared, all claiming to offer something a little different.