Why do bubbles burst? Download free white paper from KEY Investment Partners

Why do Bubbles Burst in Emerging Sectors like Crypto, Cannabis & Psychedelics? (White Paper)

New technological innovations and consumer product categories often demonstrate massive growth potential. These technologies (e.g., cryptocurrencies, virtual reality, artificial intelligence) and product categories (e.g., cannabis, psychedelic therapeutics, alternative proteins) in turn attract massive investor demand.

However, there is almost always a disconnect between consumer acceptance of these technologies/ products and the capital markets performance of these emerging sectors. What drives this dislocation? Why do investors overvalue emerging businesses at the beginning of cycles and undervalue them later-on? In this white paper, we discuss the boom-and-bust cycles of emerging sectors. We highlight the cryptocurrency, cannabis and psychedelics industries as relevant case studies.


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