- Tezos Co-Founder recently expressed her thoughts on Crypto Winter.
- She stated that crypto winter is “only going to get worse,” at the ongoing Web Summit 2022
On November 03, 2022, Tezos’s Co-founder, Kathleen Breitman, stated about crypto and where it is going in the future, during a Q&A session at Web Summit 2022, in the Capital of Portugal, Lisbon.
Tezos Co-founder’s Outlook
Kathleen Breitman is the Co-founder of Tezos, an open-source smart contract platform. She said that “easy money” from venture capitalist profit-seeking and the low interest rates had artificially amplified the valuations of so many crypto firms.
She further cited about the Federal Reserve System’s (FED) price hike as she said even if the FED pauses rate hikes in the coming year, only the “small minority” of crypto applications that are truly useful and can organically grow users will expand.
It must be noted that on November 02, 2022, FED raised interest rates by three-quarters of a percentage point, which is said to be a battle against inflation that needs borrowing costs to rise further.
The Tezos Co-founder further said when asked about the price drop of most of the cryptocurrencies throughout this year, then she replied as “A lot of this was inflated on cheap money, and a lot of this was backed by basically, like, VCs trying to pump. There was a lot of easy money going into the system and I think it was artificially stoking a number of different things, mainly valuations of these companies.”
She made reference to the NFT marketplace, OpenSea, as she said “Clearly there is a phenomenon that has kind of crested and gone away in a lot of these markets, but meanwhile they’re saddled with a $13 billion valuation.” As the trading volume of the NFT marketplace hitted the lowest of $303 Million since June 2021.
Breitman also stated as she thinks there is a lot of cheap money that went in and the valuations went super sky-high. Even some people are scrambling to make those valuations justified in some form.
Moreover, at the end of October 24, 2022, the popular trading app, Robinhood, added two cryptocurrencies, Tezos (XTZ,) and Aave (AAVE) to its platform.
In continuation, Michael Anderson, the Co-founder of Framework Ventures further added about crypto winter as “when crypto prices are down, it’s hard to decide if you should sell before additional losses or hold on waiting for a hopeful rebound,” as tweeted by CruxBits, a crypto trading platform.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.