The Tezos co-founder believes that cryptocurrency firms are severely overvalued after the period of “free cash”
Kathleen Breitman, cofounder of “Ethereum killer” Tezos, believes that the continued cryptocurrency bear market cycle is barely going to worsen.
Breitman explains that the newest bull run was “inflated” by low-cost cash. “There was a whole lot of straightforward cash going into the system,” she stated.
The Tezos co-founder believes that cryptocurrency firms have been overvalued. She pointed to the truth that the main NFT market OpenSea continues to be valued at a whopping $13.3 billion even though its gross sales quantity crashed in comparison with 2021. “There was a whole lot of low-cost cash that went in. Valuations went tremendous sky-high,” Breitman famous.
Adverts
After the U.S. Federal Reserve dialed again its pandemic-era assist, many cryptocurrency firms began to battle resulting from declining cryptocurrency costs. Bitcoin (BTC), Ethereum (ETH), and different main firms are down greater than 70% from their current peaks.
Later at this time, the Fed is on observe to announce one other important price hikes because it persistently makes an attempt to carry inflation underneath management.
Flight to high quality?
Breitman believes that solely these issues that truly have utility are going to “thrive” sooner or later now that low-interest charges are a factor of the previous. She says that it is just a “small minority” of cryptocurrencies.
The Tezos co-founder has echoed Ripple CTO Brad Garlinghouse, who as soon as stated that the world doesn’t really want 3,000 initiatives.
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