- Kathleen Breitman told CNBC’s Karen Tso that “easy money” from venture capitalist profit-seeking and low interest rates had artificially inflated the valuations of many crypto firms.
- Even if the Fed pauses rate hikes next year, only the “small minority” of crypto applications that are truly useful and can organically grow users will thrive, she said.
The ongoing crypto winter is “only going to get worse” as the industry recalibrates to a higher interest rate world, according to the co-founder of blockchain platform Tezos.
Asked about the fall in price of many crypto assets this year, Kathleen Breitman said: “A lot of this was inflated on cheap money, and a lot of this was backed by basically, like, VCs trying to pump.”
“There was a lot of easy money going into the system and I think it was artificially stoking a number of different things, mainly valuations of these companies,” she told CNBC’s Karen Tso Wednesday at the Web Summit conference in Lisbon, Portugal.
Breitman cited NFT marketplace OpenSea, where trading volume plunged from $2.9 billion in September 2021 to $349 million in September 2022, according to data from Dune Analytics.
“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 said.
Full article: https://www.cnbc.com/2022/11/02/crypto-winter-only-going-to-get-worse-blockchain-firm-ceo-says-.html
Tezos CEO says the ongoing crypto winter is “only going to get worse” as the industry recalibrates to a higher interest rate world. Do you agree that the bear market will only get worse?