Many More Crypto Firms to Suffer FTX’s Fate, Predicts Palantir Co-Founder
Joe Lonsdale – Co-Founder of the software company Palantir Technologies – thinks multiple cryptocurrency companies will go bankrupt in the future since most function like Ponzi schemes.
However, he believes blockchain technology will remain a key part of the future financial system as it enables a “new and important way” to move money globally.
Expect More Cases Like FTX
According to Lonsdale, the lack of pertinent rules in the cryptocurrency sector and the assumption that most projects in the space operate as Ponzi schemes are prerequisites for future collapses like the FTX one:
“Overall, I think you’re going to have most things crash. This is what you’d expect in any situation where you have stuff that’s not regulated.”
The crypto industry is full of companies that declared bankruptcy this year for different reasons, with the most common being the harsh consequences of the bear market. Palantir’s Co-Founder argued that a huge chunk of those entities “have had a lot of corruption,” naming FTX as one.
Despite the turbulence in the space and the suggestion that many companies are willing to scam users, Lonsdale thinks cryptocurrencies could provide certain benefits to the monetary network:
“Long term, there’s a good part of crypto, but most of what we saw in crypto the last three, four, five years was a speculative bubble driven by cheap money and driven by a lot of these Ponzi schemes.”
He is also a keen proponent of blockchain technology, saying it allows people to transfer funds online without relying on a centralized third party like a government or a banking institution.
“It allows more kind of liberty for the financial system from really bad-acting governments,” Lonsdale concluded.
Palantir Accepts Bitcoin
The public American software and analytics company – Palantir Technologies – entered cryptocurrency’s ecosystem last year by embracing bitcoin as a means of payment. It also considered purchasing amounts of the primary digital asset or other assets to store them on its balance sheet.
Peter Thiel – another Co-Founder of Palantir – has displayed himself as a crypto advocate numerous times and is even a bitcoin HODLer. The German-American billionaire entrepreneur praised the asset’s decentralized nature last year and said he feels like he has been “underinvested” in it.
BTC skyrocketed to an all-time high of nearly $70,000 less than a month after his comments. However, the following 12 months have not been so successful, and the asset is currently hovering around $17,200, or a 75% decline compared to the peak level.
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