According to Blockchain.com CEO, there is more crypto destruction to come
Peter Smith, CEO of Blockchain.com is of view that there will be more crypto destruction in the coming weeks, where fundamentally weak assets would fall down just like Terra.
More crypto destruction to come
The price of Bitcoin plunged its lowest on 12th May when it reached around $ 26000. It was the lowest market price since 2020. That week nearly $300 billion in value was wiped from the crypto crash. Then $UST lost its peg. As a result, LUNA lost its value and despite trying everything to bring stability, Terra collapsed.
The investors went into a sell-frenzy and experts predicting the crash a long overdue. Some say that this would be the worst recession since 2008. No matter what the coming weeks will bring, the crash has a very wide impact especially on institutions & individuals’ investments as it has wiped out the gains from the last two years.
Blockchain.com CEO on Crypto Crash
According to the CEO, Peter Smith, the crypto market would be the same for the coming two to three weeks at least. Then only there would be some bullish period. He says that diversification is the key for the crypto investors. And they should invest in different assets to avoid volatility.
You must have heard the saying, “Things will get worse before they get better”. The same applies here as there is more crypto destruction to come. The crash is a good thing as fundamentally weak crypto assets would fall down & only the strongest would emerge in the aftermath.
Smith also stressed that the current situation should be taken as a lesson. Investors should always slowly build position in an asset over time utilizing strategy such as Dollar Cost Averaging. An investors’ position should always be spread over and not open to any single bout of volatility.
In an interview to CNBC’s Worldwide Exchange, Peter Smith said investors should not panic into selling their holdings. Holding your investments while also averaging your buy-ins at the same time is the key to success right now. Therefore, prepare yourself for the coming weeks because this decentralized finance system is still in its nascent stage. It would undergo periods of correction before we saw long periods of adoption and growth.
He termed this crash as “creative destruction”. In a Tweet, he wrote that ‘Creative destruction makes an industry and ecosystem stronger in the long-run. Embrace it, get to work and build.’
The coming weeks are crucial. This crash would badly hit companies/institutions without better risk management. However, there is a silver lining behind the current crash as new innovations & solutions come after moments like these.
