This is because cryptocurrencies aren't even companies; they have no directors, no board members, no debt, no assets. It's impossible for them to go bankrupt.
Also, companies can become nonviable and be shut down. On the other hand, it's almost impossible for a crypto to become nonviable... There will always be some tinkerers willing to run nodes at a tiny annual loss. PoS cryptos are very cheap to operate.
I mean, FTT just went from $25 to something in the $2 range since the whole FTX thing blew up. And it will probably hit zero soon -- I have no idea why anyone still wants it.
You have no idea.
Well, it'd likely be worse than bankruptcy, because there wouldn't be any assets to go after in court.
Stock investors tend think more like "This stock just dropped 80%, I have to cut my losses. Bye."
And now look at what's going on; big tech stocks crashed faster than crypto did. In a realistic economic environment, could these stocks be worth less than 'worthless' crypto? The effect is even more dramatic than I thought. It confirms my beliefs that the economy of the last decade was a kind of lucky lottery system.
It's all completely worthless, but some worthless things are worth far more than others depending on fickle social connections and sheer randomness... Then reinforced by first mover advantage and network effects.