Unbacked

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Cryptoassets - debt.

An unbacked asset - for example a debt receivable - is one that does not have any additional security, support or other backing for its value.


Unbacked cryptoassets
"Unbacked cryptoassets make up nearly 95% of the [total]... Bitcoin, of course, is the most prominent example, but there are now nearly eight thousand unbacked cryptoassets in existence.
These have no intrinsic value – that is to say there are no assets or commodities behind them: the value of the cryptoasset is determined solely by the price a buyer is prepared to pay at any given moment.
As a result, their value is highly volatile... For this reason, the main use of unbacked cryptoassets is for speculative investment..."
Is 'crypto' a financial stability risk? - Bank of England - Jon Cunliffe, Deputy Governor, Financial Stability - October 2021.


See also