How will the Wirecard scandal affect the Cryptosphere?

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A car that leaks oil is very annoying, and becomes more and more unreliable for you as a driver every day. The constant leaking of negative stories about the German company Wirecard is just like such a car.

Either you get rid of the car or you repair it. In the absence of a “spokesperson” for the cryptoshere, those two options seem difficult for the world of crypto that sees more and more negative stories coming up.

And a German bitcoin and pyschedelic drug enthusiast pocketed 13m euros for introducing Wirecard and Softbank from @FD , @BondHack and @ArashMassoudi https://t.co/981XECuXqE

— Tom Braithwaite (@TBraithwaite) August 7, 2020

What’s new this week is that people are now looking on three continents for corporate executives who can help explain where the $2 billion that seems to have disappeared really is.

History

In 2005, long before Bitcoin was known, a small startup called Wirecard was introduced on the German DAX, the index of the most reliable stocks in the largest European economy.

Crypto Cards Affected as UK Regulator Suspends Wirecard Subsidiary#trader #bitcoinmining #bitcoin #investment pic.twitter.com/wmIGTMCQIj

— Jasmine (@JussBeinHonest) August 2, 2020

Wirecard was a payment processing company that turned out to be so successful and reliable for many Germans that it was even considered a “unicorn” by venture investors in Silicon Valley. A mythological animal that seemed to possess special powers.

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Crypto sites like Crypto.com and TenX even allowed the German company to become their official credit card provider, which made Wirecard known as the one and only “digital payments processor”, an example for crypto companies everywhere.

The Wirecard scandal includes one executive hiding in Russia, the CEO under arrest in Germany, and $2 billion missing in the Philippines ?‍♂️?️‍♂️ https://t.co/Zs4aBzbcec#Bitcoin #TRX  #Crypto #Cryptocurrency #ETH #XRP #EOS

— Crypto Europe (@CryptoEurope3) August 7, 2020

In June of this year, however, the bomb burst when it emerged that a huge accounting scandal had left a hole of $2.1 billion. CEO Markus Braun was arrested and accused of price manipulation.

No Satoshi, no spokesperson

The cryptosphere was confronted with another scandal, one that keeps leaking, it seems, because every week new stories are published about Wirecard, and every week again crypto sites are negatively in the news. Also on Reddit, people are constantly wondering if the Wirecard scandal could affect their Crypto.com debit card.

Bitcoin, Wirecard and Crypto are all mentioned together if you read the classic press.

FT: Crypto card provider Wirecard kept up fraud during investigations https://t.co/Dt8rbBmweK #bitcoin @crypto_discuss pic.twitter.com/vPCZeHYpCU

— The Bitcoin Street Journal (@BTCstJournal) August 8, 2020

However, because Bitcoin’s inventor Satoshi Nakamoto is unknown, this also means that there is no real spokesperson to defend the cryptosphere. And so crypto has to go through this scandal again without being able to resist.