Is Block Stock a Buy With the Crypto Winter Staying Awhile?
Even before the FTX disaster, trouble was already brewing in the burgeoning crypto market this year. Several trading exchanges and crypto tokens have gone defunct, leaving many investors with losses and an inability to make withdrawals. FTX is a different story, though. It was once regarded by many as a type of beacon in the shady crypto world, and some consumers now feel justified in avoiding cryptocurrencies altogether. Whether they're right or wrong to feel that way, "crypto winter" could be a long and drawn-out event.
Where does that leave Block (NYSE: SQ), the company formerly known as Square that changed its name to reflect its crypto economy aspirations? FTX's sudden demise certainly isn't great news for it. However, the bulk of Block's business is still doing just fine, though some much-needed housekeeping is in order.
First, a definition of "crypto winter." The phrase refers to a long period of depressed digital asset prices. The prices of Bitcoin, Ethereum, and countless other digital currencies have indeed collapsed. And with a big exchange like FTX declaring bankruptcy, a quick resurgence in consumer interest -- let alone mainstream confidence -- is unlikely.
Source Fool.com
