Its an unregulated market. People are convinced that since its cryto, it won't be vulnerable to the same old issues that every other traded instrument has had

Its an unregulated market. People are convinced that since its cryto, it won't be vulnerable to the same old issues that every other traded instrument has had since the south sea bubble/tulip mania. the 2008 market crash was similar as you pointed out, in that it involved wholesale fraud (using a subset of good mortgages to market worthless ones) that were "validated" by ratings agencies. Here, there were no real third parties to provide ratings. Just people saying "Look its crypto, you can loose because its backed by real something or other"