Leaders of the blockchain and the cryptocurrency industry told CNBC that the recent collapse of the digital coin market should help get rid of the “bad actors” in space.
Billions of dollars worth of money have been wiped off the cryptocurrency market in recent weeks, driven by a sell-off and the collapse of the algorithmic stablecoin terraUSD and its associated token luna.
“We are in a bear market. And I think that’s good. It’s good because it will clean up the people who have been there for bad reasons, “Bertrand Pérez, CEO of Web3 Foundation, told CNBC at the World Economic Forum in Davos, Switzerland.
“It’s also good because all these projects are gone. So the legal ones will be able to focus only on development on construction and forget about the evaluation of the token, because everyone has fallen. “
“During … bull markets, when everything is green, no one thinks about construction, everyone thinks about getting rich, which is … wrong thinking,” he added.
Mihailo Belic, co-founder of blockchain company Polygon, reiterated the view, calling the sale of the cryptocurrency “necessary”.
“[The] the market, in my personal opinion, has become perhaps a little irrational or perhaps a little reckless to some extent. And when such times come, [a] adjustment is usually needed at the end of the day [is] healthy, “Belic said.
The sell-off of major digital currencies such as bitcoin and ether has been driven by a wider downturn in stock markets, particularly in the technology sector. The decline was exacerbated by the loss of the stable terraUSD coin of $ 1.
Large, institutional investors are entering the cryptocurrency market and have also been a key driver of the latest sell-off, according to Brett Harrison, president of the FTX US cryptocurrency exchange.
He said there is a wider decline in risky assets, such as stocks, but this affects digital coins more than in the past because there is more institutional money in space.
“If people are looking for assets to sell, crypto will be on the list,” Harrison told CNBC.
Brad Garlinghouse, CEO of Ripple, urged investors to look at the long term.
“Bitcoin about two years ago right now, bitcoin was about $ 8,000. It’s 30,000 now. So yes, there was a crash and a trillion dollars came out. But when you cut back a little bit and look at the long-term trends, I think you see that the cryptocurrency is here to stay, “Garlinghouse told CNBC.
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