It’s been a torrid year for investors in cryptocurrency but the worst is not over, says Carol Alexander, my guest on the latest New Money Review podcast.

In 2023 the crash will shift to decentralised finance (DeFi), predicts Alexander.

DeFi, she argues in the podcast, is repeating the mistakes of the centralised crypto lending schemes—like BlockFi, Celsius and Voyager—that faltered this year. And DeFi’s “magic money tree” is bound to fail in the same way, she says.

Alexander is professor of finance at the University of Sussex. Now focusing in her work primarily on crypto markets, she has worked in financial risk management, in mathematical finance and as an econometrician.

She also blogs regularly on crypto, digital money and quantitative finance.

In the podcast we discuss:

• The role of clearing, custody, margin finance and insurance funds at crypto exchanges
• Why Alameda’s exemption from FTX’s liquidation algorithm was a big deal
• Why retail investors shouldn't trade on crypto exchanges
• Why crypto exchanges are rigged to benefit professional traders
• Why “proofs of reserves” at crypto exchanges are worthless
• Why crypto exchange audits require stress tests and operational checks
• Why DeFi will be the focus of the crypto crash of 2023
• Staking as a service, yield farming and the magic money tree of DeFi
• Why Tether is so dangerous
• How Tether and Binance are dollarising the world
• Why Tether and Binance may fight a stablecoin war