Will the Crypto meltdown impact the Boston condo for sale market?
It feels like a Madoff-meets-millennial moment.
The crypto party has come crashing down with the spectacular collapse of Sam Bankman-Fried’s FTX, the world’s second-largest cryptocurrency exchange. The fallout will be huge, with the company owing customers more than $8 billion.
How exposed will real estate be? hopefully not much, it seems — the few Boston condo developers touting they would accept crypto payments generally converted it to cold, hard dollars when a deal closed.
But the whole tenor of the debacle surrounding the frumpy 30-year-old and what it says about our financial system (including real estate) might be the broader takeaway.
Back in the day, when you ran a multibillion-dollar company into the ground, you would hide from the press and dispatch your lawyer to deal with inquiries and irate investors.
These days, you share your feelings in the media both television and in print
Those on the crypto world and were caught up in the FTX fallout were particularly taken aback by a sympathetic New York Times profile of Bankman-Fried. The story said:
“He has also found other ways to occupy his time in recent days, playing
the video game Storybook Brawl, though less than he usually does, he
said. ‘It helps me unwind a bit,’ he said. ‘It clears my mind.’”
Heaven forbid the world’s formerly second-richest millennial should feel to, stressed out by owing money to more than 1 million people, with some losing much, if not all, of their lifetime savings. (To be fair, there is still a SEC and Justice Department investigation playing out that might send Sam Bankman-Fries to prison.)
Is real estate suffering some of the same delusion right now? Here in Boston we’re building luxury high-rise condos and apartment for the wealthy, but I wonder like crypto, could the luxury condo market weather any future financial storms that could severely impact the Boston luxury condo for sale market?