Meta Loses a Quarter-Trillion Dollars in Market Cap, Dragging Crypto Metaverse Tokens With It

The Breakdown

Blockworks

Investing, Business

4.8 • 806 Ratings

🗓️ 5 February 2022

⏱️ 14 minutes

🔗️ Recording | iTunes | RSS

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Summary

This episode is sponsored by Nexo, Arculus and FTX US. On this edition of the “Weekly Recap,” NLW looks at Meta’s big flop in the equities markets and how it's spilling over into crypto metaverse tokens. He also looks at the Boston Fed’s CBDC research and recaps the Wormhole exploit. - Nexo is a powerful, all-in-one crypto platform where you can securely store your crypto. Invest, borrow, exchange and earn up to 18% APR on Bitcoin and 20+ other top coins. Insured for $375M. Audited in real-time by Armanino. Rated excellent on Trustpilot. Get started today at nexo.io. - Arculus™ is the next-gen cold storage wallet for your crypto. The sleek, metal Arculus Key™ Card authenticates with the Arculus Wallet™ App, providing a simpler, safer, and more secure solution to store, send, receive, buy, and swap your crypto. Buy now at getarculus.com. - FTX US is the safe, regulated way to buy bitcoin, ETH, SOL and other digital assets. Trade crypto with up to 85% lower fees than top competitors and trade ETH and SOL NFTs with no gas fees and subsidized gas on withdrawals. Sign up at FTX.US today. - Enjoying this content? SUBSCRIBE to the Podcast Apple: https://podcasts.apple.com/podcast/id1438693620?at=1000lSDb Spotify: https://open.spotify.com/show/538vuul1PuorUDwgkC8JWF?si=ddSvD-HST2e_E7wgxcjtfQ Google: https://podcasts.google.com/feed/aHR0cHM6Ly9ubHdjcnlwdG8ubGlic3luLmNvbS9yc3M= Join the discussion: https://discord.gg/VrKRrfKCz8 Follow on Twitter: NLW: https://twitter.com/nlw Breakdown: https://twitter.com/BreakdownNLW “The Breakdown” is written, produced by and features Nathaniel Whittemore aka NLW, with editing by Rob Mitchell, research by Scott Hill and additional production support by Eleanor Pahl. Adam B. Levine is our executive producer and our theme music is “Countdown” by Neon Beach. The music you heard today behind our sponsor is “Time” by OBOY. Image credit: Michael Nagle/Bloomberg/Getty Images, modified by CoinDesk. Join the discussion at discord.gg/VrKRrfKCz8.

Transcript

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0:00.0	Welcome back to The Breakdown with me, NLW.
0:09.1	It's a daily podcast on macro, Bitcoin, and the big picture power shifts remaking our world.
0:15.0	The breakdown is sponsored by nexo.io, Arculus, and FTX, and produced and distributed by CoinDesk.
0:22.8	What's going on, guys? It is Saturday, February 5th, and that means it's time for the weekly recap.
0:29.9	Now, this week is going to be closer to a true weekly recap where I talk about a number of different topics,
0:35.2	although we will have some concentration in what happened in
0:38.4	equities this week, believe it or not. But before we get into that, if you were enjoying the
0:42.7	breakdown, go subscribe to it, give it five stars, leave a nice review, or if you want to get
0:47.2	deeper into the conversation, come join us on the breakers discord. You can find that, link in the show
0:52.8	notes, or go to bit.ly slash breakdown pod.
0:56.7	Finally, a disclosure, as always, in addition to them being a sponsor, I also work with FTX.
1:02.5	Now, let's start on the macro side of things. I've been talking all year about the relationship
1:08.6	between crypto and the traditional markets, especially between
1:13.3	Bitcoin, crypto, and stock prices. And in that vein, though, something very interesting
1:18.4	happened this week. The context is it has been earnings season, and earning season can either
1:24.2	shift or conform narratives. If things are pretty bad and then people see
1:28.9	earnings come in lower than anticipated, it really can reinforce that bare narrative. However,
1:34.9	the opposite is also true, where if the perception is that things are bad but then earnings
1:39.0	come in really well, it can flip the opposite. And in fact, this week we saw both things happen.
1:45.3	But without a doubt,
1:54.7	the biggest news is meta. Meta, i.e. Facebook, absolutely tanked this week. We are talking crypto-style pain as much as 26% down. This wiped hundreds of millions off the market cap,
2:03.3	in fact, a quarter trillion dollars to be exact.
	...

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