“Crypto is no longer just a toy,” says Vitalik Buterin of Ethereum
In a recent exclusive appearance on CNN Business, Ethereum co-founder Vitalik Buterin shared his thoughts on the recent crash of the crypto market and the general state of the crypto industry.
Buterin, who lost his billionaire status in the last market correction, said he did not care about the crash. In his defense, he noted that this wasn’t his first. Consistent with this, the crypto industry has seen several market crashes, with the pullback from last year 2017/2018 being the most notable.
The boss compared current market activity to a bubble that is “notoriously difficult to predict”. According to him, the entire facade “could have ended” or “could have ended in months”. He added:
We have had at least three of these large crypto bubbles so far. And often enough, the reason the bubbles stop is because an event occurs that just makes it clear that the technology doesn’t yet exist. His wallet, which speaks of Buterin’s Ethereum wealth, currently holds 325,000 ETH worth an estimated $ 747 million at current market prices. The value of his ETH holdings is down over 35% from the high of $ 1.4 billion on May 12.
Buterin also compared the current market crash to similar events that happened four years ago. He noticed:
It feels like crypto is almost as ready for the mainstream as it was not even four years ago. Crypto is no longer just a toy. But unlike the Bull Run and the 2017/2018 crash, the crypto landscape has changed significantly. For one, the final bull run was fueled by institutional players. Ethereum has also enjoyed a fair share of institutional adoption and has ultimately driven prices up.
Some industry experts have blamed leveraged trading on derivatives exchanges for the recent market downturn. And, of course, Tesla CEO Elon Musk also played a role in the sad turn of events.
Regarding the musk effect, Buterin believed that the billionaire’s influence on the crypto market will eventually wane.
Elon Musk tweeting is something the crypto space was only literally introduced into last year and this year. I think it’s reasonable to expect a bit of weirdness. But I think the markets will learn. Elon won’t have that influence forever.
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