‘This Is Going To Explode’ – Top VCs Give Straight Predictions After Terra Luna Led Crash Wipes $2 Trillion From Bitcoin, Ethereum And Crypto Market Price
Bitcoin and cryptocurrency markets were rocked by the collapse of stablecoin terraUSD (UST)
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The bitcoin price has lost nearly 70% of its value since peaking last November, crashing below $20,000 per bitcoin last month. Ethereum price has seen even wilder swings, along with most other major cryptocurrencies, as the market braces for an earthquake from the Federal Reserve.
Now, after warnings of a “crisis on the horizon” for bitcoin and crypto exchange Coinbase, fears are growing among the investment community that the US securities watchdog may pursue legal action against venture capitalists who knowingly sold hollow digital assets to retail investors – with angel investor Jason Calacanis predicting “this is coming to blow up in the faces of the venture community.”
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The Bitcoin price has suffered an almighty crash this year, dragging down the price of Ethereum and … [+]
“I think the overwhelming majority of tokens are securities, but they are dumped on retail investors. And this is done explicitly by venture companies,” Calacanis told Bloomberg.
Earlier this year, the US Securities and Exchange Commission (SEC) doubled the number of employees in its Crypto Assets and Cyber Unit as it grapples with the red-hot bitcoin and crypto markets. The combined crypto market surged to an eye-watering $3 trillion last year before crashing by around $2 trillion over the past few months due to the Federal Reserve’s increasingly hawkish stance and the collapse of the Terra blockchain ecosystem which has caused confidence in various crypto borrowers. and brokers to vaporize.
“The tide has run out,” Calacanis said, referring to this year’s crypto market crash that he believes will trigger “years of litigation and pain and suffering.”
“Most of these tokens being sold are either pre-launch companies, which will value them at $3 million to $10 million, or they’re scams, or they’re run by incompetents or they’re scams run by incompetents. It’s a combination of those three buckets ,” said Calacanis, who made a name for himself as a Silicon Valley investor with bets on ride-hailing app Uber, commission-free trading app Robinhood and meditation app Calm.
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The Bitcoin price has crashed over the past few months, helping to wipe $2 trillion of the overall … [+]
SEC Chairman Gary Gensler has previously labeled the bitcoin and crypto market a “Wild West” and has repeatedly warned many crypto companies of “non-compliance”.
However, Calacanis said that those who create and finance cryptocurrencies are more responsible than the exchanges and platforms that act as a marketplace for digital assets. Earlier this year, the SEC found crypto lender BlockFi to be an unregistered investment company and settled the company for $100 million.
“The people who create these things, they are the ones who are 99% responsible, and the early investors. I would say the platforms and other people are 1% responsible for this,” Calacanis said, calling for regulations. which will only allow people to invest in the highly volatile and fraud-plagued crypto market once they have been ‘accredited’.
