Cryptocurrency firms hope bear market will remove bad players
CNBC was told by executives from blockchain and cryptocurrency companies that the crash of the digital currency market in recent years should be a wake-up call for “bad actors” within the industry.
The cryptocurrency market lost billions in value in just a few weeks due to the sell-off of stocks and the collapse of the stock market. collapse of algorithmic stablecoin terraUSD and its related token luna.
We are in a bear-market. That’s a good thing. It’s very good because people will be cleared from those who came here for bad reasons,” Bertrand Perez (CEO of Web3 Foundation) told CNBC in Davos at the World Economic Forum.
It’s also good because it means that all the projects have ended. The legit projects will now be free to concentrate on the building of their products and not worrying about token valuations.
He said, “During bull markets, when all is green, nobody thinks about building. Everyone thinks about making money, which is…the wrong mindset.”
Mihailo Bjelic was co-founder and CEO of Blockchain company Polygon. He called it “necessary”
“[The]My personal view is that the market became a bit reckless or irrational in certain areas. When times are like these, [a]Normal corrections are required, at the end. [is]Bjelic declared that being healthy was his goal.
Sell-offs in digital currencies like bitcoin etherThis was caused by the wider slump in stock market, and more specifically in technology sectors. It was compounded by the terraUSDStablecoin loses its $1 peg
Brett Harrison, President of cryptocurrency exchange FTX U.S., stated that large institutional investors had been investing in cryptocurrency markets and they were also a driving force behind the current sell-off.
According to him, there’s been an increase in risk assets like stocks but it is affecting digital currencies more than in the past due to the presence of more institutional money.
Harrison said that cryptocurrency is a great option for those looking to trade assets.
Brad Garlinghouse CEO at Ripple urged investors not to look too far ahead.
Bitcoin was around $8,000. Two years ago, it was worth about $30,000 It’s now at 30,000. Yes, it’s crashed and there was a huge drop in the price. “But if we zoom in and take a look at the longer term trends, then I believe you’ll see that cryptocurrency is here to stay,” Garlinghouse said to CNBC.