The recent cryptocurrency market crash is scaring those unfamiliar with the moves in the industry, but better get used to it, as for the CEO of blockchain.com, there’s a lot more chaos to come.
In an interview with CNBC, peter smith, CEO of blockchain.com, said that the recent collapse of cryptocurrencies due to problems with UST and the LUNA project it is only part of what could happen and that “more chaos is on the way”. He said, however, that in the long run this is a good thing as a lot of risks will be exposed, which is good for a decentralized economy.
Smith said the lesson for investors to learn from what has happened in recent weeks is to invest steadily, gradually building up a position in an asset so as not to be exposed to a single moment of volatility.
“Invest slowly. And you have to be prepared to hold on to your investment for a while, because we’re still in the early stages of building this whole financial system.” Peter Smith said.
Investors are impatient, Smith says, with hunches that have swamped the industry, making big gains and leaving retail investors with losses, a “classic end result of a bubble.”
“What is happening in the market is a de-risking across the global market, and we certainly feel it in the crypto market, especially in the last few weeks. I had been saying for a long time that this was going to be a long process of adoption and growth,” added Smith.
This process, according to the CEO of Blockchain.com, will end up causing more “destruction” in the crypto market as the weakest links are broken.
“There are various companies, protocols and assets that need a creative destruction process to become market positive. I expect that in the coming weeks, after this recent dramatic drop, some of the risks will begin to be exposed.”
Peter Smith continues to believe in the crypto market and in a future recovery of asset prices, however, he thinks that these moments of decline are often necessary for the ecosystem to become stronger and mature, thus achieving the necessary stability for it to continue to grow. become a new economy.
