The co-founder of the IT startup Palantir believes that most cryptocurrencies are banal financial pyramids, so most market participants will simply leave.
During an interview with Fox News, Joe Lonsdale emphasized that the crisis in the cryptocurrency market will continue to intensify and companies will collapse one by one. Despite his attitude towards cryptocurrencies, Lonsdale respects distributed ledger technology and believes that blockchain will become an important component of future information systems.
“I think most cryptocurrency projects will fail. Various crypto lenders, tokens, other parts of the ecosystem are a Ponzi scheme, they just don’t make sense. Crypto firms were judged not by cash flow, not by the created product or economic indicators, but on the basis of speculation. This is to be expected in an area that is not regulated,” the co-founder of Palantir is convinced.
Lonsdale noted that there are good companies in the cryptocurrency industry, but the last “three to five years” it has been inflating a bubble and creating a lot of pyramids. Moreover, cryptocurrencies can also be used for good:
“There is a sense in the existence of decentralized power and assets like bitcoin. It helps people withdraw money from China, Russia, Venezuela. It gives more freedom to the financial system and protects against the actions of bad governments.”
Earlier, Ripple CTO David Schwartz said that the story of the collapse of FTX is unlikely to teach the cryptocurrency community more caution.
Source: Bits
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