More crypto companies will go bankrupt Ponzi scheme bankruptcybut cryptocurrencies will continue to be an important tool for exchange funds around the world, a venture capitalist told Fox News.
“Overall, I think most things will crash,” said Joe Lonsdale, an investor and co-founder of software company Palantir. Various crypto lenders, cryptocurrencies, and the rest of the ecosystem were “Ponzi schemes and make no sense at all.”
“This is to be expected in any situation where you have something unregulated,” he added.
See how the co-founder of PALANTIR predicts the future of cryptocurrency exchanges.
Over the past few years, Lonsdale said, cryptocurrency projects have been “valued based on how much people pay for it, not on cash flow or value creation in the economy.”
Bahamas-based cryptocurrency exchange FTX Filed for Chapter 11 bankruptcy in early November after reportedly losing at least $1 billion.
BlockFi, another major cryptocurrency company, also announced bankruptcy last week. It follows other cryptocurrency companies such as Celsius Network and Voyager Digital into Chapter 11 proceedings.
Some companies that declared bankruptcy “had a lot of corruption,” Lonsdale said, but he only named FTX. But most of what we’ve seen in crypto over the last three, four, five years has been a speculative bubble driven by cheap money and many of these Ponzi schemes.”
Despite the recent turmoil cryptocurrency marketCrypto-based technology will continue to develop even more features, Lonsdale said. Lonsdale said the blockchain technology used in cryptocurrencies has made it possible to transfer funds online without using traditional government or banking infrastructure, making it a new and important way to move money around the world. I said a way would be possible.
“It makes sense that something like Bitcoin would exist, with more decentralized power,” he said. money from russiafrom Venezuela, from China.”
“We can give the financial system more freedom from really bad government,” Lonsdale continued.
blockchain technology Venture capitalists said it will continue to be an important part of the future.
“I think this ecosystem, in the long run, will show that some of this stuff will be useful to the world,” he said. ”
Click to watch Joe Lonsdale’s full interview on the future of cryptocurrencies. here.