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What's Behind Affirm's Meltdown?

fintechlatest.substack.com

What's Behind Affirm's Meltdown?

Plus, crypto regulation in the UK and Europe.

James Ledbetter
Mar 20, 2022
Share this post

What's Behind Affirm's Meltdown?

fintechlatest.substack.com

Number of the Week: -80% (explanation below)

What’s Behind Affirm’s Meltdown?

Here is a shocking fact to behold: within the last five months, the market value of Affirm—the widely touted US market leader in the burning-hot Buy Now, Pay Later (BNPL) sector—has plummeted by about $35 billion. At one point this week Affirm’s market capitalization dipped below $10 billion for the first time since going public in January 2021.

This is especially surprising for at least two reasons: a) the company was founded, and is run, by Max Levchin, who’s usually considered to have magical Wall Street powers; b) Affirm continues to post phenomenal growth numbers (more on this below).

So what is going on?

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