Letter: ‘Crypto Winter’ is part of an inevitable consolidation

Confidence in the crypto industry continues to falter given recent liquidity issues, particularly the failure of terra and its sister coin luna in May.

However, all is not gloomy. On the one hand, the consequences of the collapse of FTX (“The crypto world shaken by the fall of the FTX empire”, ReportNovember 12) will not be as severe as the terra-luna fallout, as the main risks here are FTX-related assets and how quickly they can be sold.

More importantly, this is an opportunity to phase out the weakest players in the industry, a crucial step for the long-term health of the blockchain, especially those that are overly dependent on poor fundamentals and uncertainties. an inflated hype.

This evolutionary stage is similar to the “dotcom bubble,” and with it comes an inevitable “crypto winter” as the market consolidates.

Alain Vey
Founder and President, Aventus
London EC1, UK

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