Leaders in the blockchain and cryptocurrency industries told CNBC that the recent crash of the digital coin market should help get rid of “bad players” in space.
Billions of dollars have been wiped out of the cryptocurrency market in the last few weeks due to the sale of shares and the collapse of the algorithmic stablecoin terraUSD and the associated luna token.
“We’re in a bear market. And I think that’s good. It’s good because it cleans up people who were there for the wrong reasons,” Bertrand Perez, CEO of the Web3 Foundation, told CNBC at the World Economic Forum. in Davos, Switzerland.
“It’s also good because all those projects are gone. So the legitimate ones will only be able to focus on development and building and forget about token valuation, because everyone is down.”
“During … bull markets, when everything is green, no one thinks about building, everyone thinks about making money, which is … wrong thinking,” he added.
Mihailo Bjelic, co-founder of blockchain company Polygon, reiterated this sentiment and called the sale of the cryptocurrency “necessary.”
“[The] In my personal opinion, the market may have become a little irrational or maybe a little reckless. And when such times come, [a] correction is normally needed and at the end of the day [is] healthy, “said Bjelic.
The sell-off of major digital currencies, such as bitcoin and ether, was triggered by a wider stock market slump, especially in the technology sector. The decline was exacerbated by terraUSD’s stablecoin losing its $ 1.
Large institutional investors have joined the cryptocurrency market and, according to Brett Harrison, president of the FTX US cryptocurrency exchange, have also been a key driver of the recent sale.
He said there was a wider decline in risky assets such as stocks, but that it affected digital coins more than in the past because there was more institutional money in space.
“If people are looking for assets to sell, cryptocurrencies will be on the list,” Harrison told CNBC.
Brad Garlinghouse, CEO of Ripple, called on investors to take a longer-term perspective.
“Bitcoin about two years ago was about $ 8,000 right now. It’s now $ 30,000. So yes, there’s been a trillion dollars and a trillion dollars have fallen. they will stay here, “Garlinghouse told CNBC.
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