‘Crash Potential’ —Crypto Millionaire issues strong warning as Bitcoin and Ethereum rebounder price
Bitcoin
The Bitcoin price has climbed to over 21,000 dollars per bitcoin, up from less than 19,000 dollars last week, while the ethereum price has topped 1,200 dollars per ether despite the crypto being marked as “the largest Ponzi scheme in human history . ”
Now, as many bitcoin and ethereum investors confirm their commitment, cryptocurrency billionaire Sam Bankman-Fried has warned that “a significant fraction” of cryptocurrencies are “empty products” with “real crash potential”.
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Bitcoin and cryptocurrency billionaire Sam Bankman-Fried has warned that it can be difficult to say healthy crypto … [+]
“When you have something that is basically an empty product, which is true for some places and assets in crypto, it is something that definitely has a real crash potential,” said Bankman-Fried. CNN.
“With market value or volume, a fairly small fraction of the cryptoecosystem represents this, but by number of assets it is a significant fraction.”
There are currently just over 20,000 separate cryptocurrencies listed on market tracking CoinMarketCap, with bitcoin and ethereum contributing most of the market’s value.
“The general pattern is a long tail of assets that have very little use and that are primarily just speculation,” said Bankman-Fried, adding that it is “this deeper core that has much more use and” at least one reasonable sense of genuine future use. “
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The Bitcoin price has climbed over the last 24 hours, which increases the price of ethereum, but its rally … [+]
Bankman-Fried was also asked about a recent Bloomberg interview in which he seemed to suggest that many crypto projects resembled Ponzi schemes that only provide value because of new users depositing money.
“What I pointed out is how many of these things are basically purely economic speculation with no real potential for use,” Bankman-Fried said. “It’s not always obvious which is which. We can do what we can to try to separate them and offer assets that are healthy for the ecosystem, but we are not going to be perfect at it, no one wants to.”
The recent price crash on bitcoin, ethereum and crypto has removed around $ 2 trillion from the combined crypto market and caused unrest for many crypto companies that have struggled to maintain operations.
Crypto-borrowers, such as Celsius and BlockFi, have been forced to suspend or restrict user withdrawals while some investment companies have declared bankruptcy.
