Crypto Nomads are digital money not backed by any nation. This type of cryptocurrency run on trading platforms alternative to Bitcoins. Carnegie Mellon University research shows how these platforms became so popular that daily purchases and sales of these derivatives far surpass the volume of cryptocurrency transactions.
Two examples are particularly representative of this trading system. Mr. Bankman-Fried (FTX) worthed $8 billion; Changpeng Zhao, Chinese-Canadian founder of Binanceis; Arthur Hayes, creator of BitMEX. All of them used to be based in the U.S. and then moved towards Hong Kong or Singapore.
Most of their customers bet on future cryptocurrency price fluctuations rather than Bitcoin. At the moment, Bitcoin’s value is dropping, undermine cryptocurrency prices. The cryptocurrencies’ value recorded total global losses up to $1.3 trillion.
This type of risky training isn’t allowed in the U.S., and the crypto nomads moved elsewhere to increase their profits.
Digital Currency and Crypto Nomads In The United States
U.S. regulators attempt to prohibit cryptocurrency exchanges and selling high-risk derivatives to nonprofessional investors in the United States. This is why crypto nomads moved away, creating a global network inspired by multiplayer online games.
This system should be off-limits to U.S. investors, but that’s not always the case. The three companies have American investors, even tho in the U.S., the income profit drops compared to other nations.
Traditionally, derivatives help various businesses adapt to price changes in necessary commodities. The three platforms listed above take this system, transforming the trading exchange multiplying their profits.
For example, FTX raised $900 million in capital to expand global operations, with a market value of $18 billion. Among the other two, these global cryptocurrency platforms are based in Asia, attracting millions of users, counting $20 billion a day in transactions with derivatives trades.
To avoid a crash in the market between Bitcoins and crypto nomads, U.S. doesn’t allow this type of training. After the Justice Department accused Mr. Hayes last year of illegally operating cryptocurrency exchanges worth $11 billion in transactions with 85,000 US user accounts, the law is official.
These crypto nomad platforms moved out of the U.S. and created a global network to bet on cryptocurrencies.