David Marcus may be heading up a Bitcoin-focused company, but he doesn’t think Crypto Winter will be over anytime soon.
Marcus was the CEO of PayPal Also performed cryptographic efforts Facebook (now meta).he is currently leading light sparkis a Los Angeles startup that builds payment infrastructure using Bitcoin functionality.
and blog post Published on Medium on Friday, Marcus predicted how the cryptocurrency sector will perform in 2023.
The “ugliness” of the crypto on display
First, Marcus looks back on 2022 and mentions the bankruptcy of FTX. The $32 billion cryptocurrency exchange has established itself as a leader in its field. enlisted star player Like Tom Brady and other celebrities to enhance its image.Last month’s collapse shook and spurred confidence in the crypto sector call for stricter regulation.
FTX founder Sam Bankman-Fried has been indicted by US authorities on eight counts of criminal activity ranging from wire fraud to money laundering to fraud conspiracy. long prison sentence.
“This has been an even more difficult year for crypto,” writes Marcus. “All the early ugliness of Wall Street Greed was repeated in the rapid collapse of many corporate cardhouse styles.”
The FTX collapse just added to an already miserable Crypto Winter.Year-to-date, the two major cryptocurrencies, Bitcoin and Ethereum, have fallen by more than 60%, with the share of crypto exchanges coin base About 85% less.
Crypto Recovery Will Take Years
But Marcus doesn’t expect to feel a little safer ahead.
“We won’t be out of this ‘crypto winter’ in 2023 and probably won’t be out of it in 2024,” he wrote. “It will take years for the market to recover from the abuses of malicious players and for responsible regulation to be implemented.”
Coinbase CEO Brian Armstrong also addressed industry villains earlier this month. tell attendees “We as an industry have to come to terms with the fact that we think our industry attracts a disproportionate amount of scammers and scammers,” he said at a summit of cryptocurrency founders.
Regarding crypto regulation, Senator Sherrod Brown, chairman of the Senate Banking Committee, said a few weeks ago: I didn’t receive a free pass Because it shines brightly … Anything that looks and acts like a security, commodity or banking product needs to be regulated and supervised by responsible institutions that serve consumers. ”
“It will take years for consumer trust to be rebuilt, but ultimately we believe this will be a beneficial reset for legitimate industry players in the long run,” Marcus said. rice field.
He added: Gone are the days when he created tokens out of thin air and made millions of dollars. The music has stopped. We go back to normal programming where we have to create real value and solve real world problems. ”
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