Crypto Winter Only Getting Worse but There’s a Positive: Tezos CEO
Kathleen Breitman – Chief Executive Officer of the blockchain platform Tezos – thinks the ongoing cryptocurrency bear market is nowhere near its end.
However, she believes a “small minority” of useful crypto applications will survive the challenging times and “thrive” in the future.
The End of the Crypto Winter not Close
Despite the recent revival of the cryptocurrency market, Breitman argued that the sector is far from starting a new bull run. In her view, enthusiasm and “easy money going into the system” artificially boosted the valuation of numerous cryptocurrency projects over the past few years.
Tezos’ CEO gave the leading NFT marketplace OpenSea as an example, where trading volume dropped from nearly $3 billion in September 2021 to less than $350 million in September this year.
“Clearly, there is a phenomenon that has kind of crested and gone away in a lot of these markets, but meanwhile, they’re saddled with a $13 billion valuation,” Breitman stated.
The executive believes only a tiny fraction of the thousands of cryptocurrency projects provide certain merits. She expects they will pull through the current hostile conditions and eventually “thrive:”
“Crypto hasn’t been evaluated by that metric, and neither has technology in the last 10 years that we’ve had low interest rates. It remains to be seen, but basically, I think what you’ll find is the things that are useful are going to thrive. But that’s the small minority of crypto applications, whether people want to admit it or not.”
When Will the Winter Loosen its Grip?
Cardano’s Founder – Charles Hoskinson – opined that the cryptocurrency bear market started shortly after Terra’s collapse in May. According to him, the situation will improve in several months, calming investors that such declines have occurred before and are an inevitable part of the cycle.
The former President of FTX US – Brett Harrison – said the current crypto winter is not different than those reigning years ago. In his view, there is still an “enormous amount of venture capital” flowing in the industry that will eventually lead to a next bull run.
Brian Armstrong – CEO of Coinbase – was more specific, forecasting the bear market will last between 12 to 18 months. He raised hopes that his trading venue will be among the surviving organizations and the leaders in its field in the next decade:
“If we just don’t get distracted, and we keep building great products, we’re going to do fine over the next five or ten years.”
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