Several cryptocurrency projects crashed, leading to a widespread market correction. Therefore, industry players warn that the situation may worsen in the future. Joe Lonsdale, CEO of software company Palantir, told Fox News he expects further declines, especially for some decentralized altcoin projects. Here are the details…
Palantir CEO expects collapse for decentralized Bitcoin and altcoin projects
“Overall, I think most things are going to crash,” said Joe Lonsdale, co-founder and investor of software company Palantir. For various crypto lending platforms, cryptocurrencies and other parts of the ecosystem, “it was a pyramid scheme and it made no sense,” he said.
However, while Lonsdale emphasized that cryptocurrencies will be permanent, he noted that most centralized assets will be hit the hardest. Lonsdale used the following statements:
Overall, I think most things will crash. Various crypto lending platforms, cryptocurrencies, and other parts of the ecosystem were a pyramid scheme. It didn’t make any sense. This is to be expected in any situation where unregulated things are involved.
Increasing interest in decentralized platforms in the crypto industry
Indeed, the collapse of the FTX cryptocurrency exchange rocked the cryptocurrency market, as we reported on Cryptokoin.com. This questioned the sustainability of the sector. Despite the uncertainty, Lonsdale argued that there will be more use cases for cryptocurrency technology in the future, such as facilitating cross-border transactions in exchange for promoting financial freedom. Lonsdale used the following statements:
It makes sense to have more decentralized power and something like Bitcoin to exist. He helped people get money out of Russia, Venezuela, China. In terms of the financial system, it provides more freedom from governments that really mistreat their citizens. To be frank, I don’t trust our Fed either.
Positive views in the long run
Lonsdale said some companies that have declared bankruptcy “have experienced a lot of corruption,” but only named FTX. He said he thinks “in the long run, crypto is doing well.” But he thinks what has been seen in the last three or four years is a speculative bubble driven by cheap money. He pointed out that ponzi formations increase prices. For this reason, he thinks that many cryptocurrencies and projects will go bankrupt.
But according to Lonsdale, despite the recent turmoil in the cryptocurrency markets, crypto-based technologies will continue to develop more capabilities. Lonsdale said that the blockchain technology used in cryptocurrencies allows funds to be transferred online without the use of traditional government or bank infrastructure, providing an important new way to move money globally.
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