Opinion: Lucas Kiely, Future Digital CEO
The most significant problem with cryptocurrencies is that they lack the quantifiable value that traditional stocks have, making them completely speculative. On top of that, investors can leverage trading to save billions of dollars overnight.
Industry enthusiasts who support the technology argue that blockchain’s innovative infrastructure is what gives it value. However, there is little evidence that this translates into real, tangible benefits for token holders.
Professional investors who come in from traditional finance often struggle with this. The token has no price-to-earnings ratio to follow, no supply chain to monitor, and really nothing tangible at all. This is what makes cryptocurrencies unique among all other asset classes. Cryptocurrencies are completely driven by emotions and are often driven by emotions that are highly unpredictable.
Cryptocurrency reflects the power of true free markets. Bitcoin BTCUSD It may be the only exception, as supply is finite and ownership is increasingly controlled by sophisticated institutional investors. However, most crypto tokens rise and fall in ways that are very difficult to predict and are primarily driven by traders.
Reliability, Access, and Unlimited Leverage
Some might argue that the valuations of many stocks are also not based on real value. Indeed, the valuations of tech stocks like Apple, Meta, and Nvidia have been soaring for some time. But companies still have fundamentals to rely on beyond high prices, such as profits, cash flow, supply chains, and products. Most digital assets are not like that.
Often this comes in the form of leverage. Of course, leverage is not a new concept in the investment world. Private investors can use leverage in traditional finance, but it is regulated. For example, U.S. Financial Industry Regulatory Authority rules limit retail margin accounts to 2:1 leverage against stocks. Forex trading with leverage is only available through specialized platforms and is subject to strict limits. And derivatives are primarily the domain of accredited investors.
tower on the sand
On the other hand, with cryptocurrencies, any investor can easily trade directly on an exchange with leverage of over 100x. Today, this is a bigger issue than ever, as the world’s largest institutions are investing in the cryptocurrency space. This leveraged free-for-all causes a chain of liquidations that wipe billions of dollars of value from digital asset markets, often disappearing in hours if not minutes.
Consider the large liquidation events we witnessed in late September 2025 and early October 2025. In the former case, more than $1.8 billion was wiped out in leveraged positions, while in the latter case, more than $19 billion was wiped out in a matter of hours. While there is speculation as to the real cause of the latter, what is clear is that leveraged long positions were caught up in a series of liquidations when conditions changed.
Some smart traders undoubtedly profited from this spike in volatility. However, most crypto investors would have had their positions suspended before even thinking about logging into their trading account. Because there are so few rules in cryptocurrencies, these mistakes are much more damaging than in traditional finance. When the market changes direction, these positions crumble like a house in the sand, taking billions of dollars with them.
Become smarter and faster
Cryptography is evolving. We now have some of the world’s most prominent asset managers involved and a friendlier regulatory environment around the world. However, it still lacks protections that can instantly prevent huge market events.
Much of this has to do with the ability to leverage without limit, unrealistic expectations, and the entry of institutions that can move the market with a single trade. All cryptocurrency investors must start treating the market more seriously. Those who made millions with Bitcoin were lucky, and we all know people who lost more on Dogecoin (DOGE) than those who didn’t make money.
Overconfidence and overleverage pose considerable risks to the industry as it matures and big fish start flying. All investors need to take a more systematic approach that recognizes this new reality.
Opinion: Lucas Kiely, Future Digital CEO.
This article is for general informational purposes only and is not intended to be, and should not be taken as, legal or investment advice. The views, ideas, and opinions expressed herein are those of the author alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
