Ethereum Co-Founder’s View
According to Ethereum co-founder Charles Hoskinson, the crypto market will strengthen, but only after the exiting bitcoin alternatives from the scene.
Hoskinson opened his personal opinion to CNBC, which is a market consolidation after a crash.
“What’s going to occur is a lot of these ventures that don’t have strong fundamentals, don’t have good tech, or just unrealistic projects, they will eventually run into some major wall they can’t quite overcome. They will fracture up and you will see a lot of them are certain to fail,” he said.
Hoskinson, who now runs a blockchain research firm, told in his interview that news cryptocurrency projects will not fail as they have background funds to sustain themselves.
“The problem is a lot of them have a lot of money,” Hoskinson said, according to a report carried by CNBC on its website.
“It’s really hard to fail when your burn rate is 5 million or 10 million dollars a year, and you have one billion of capital.”
From the beginning of this year, Bitcoin shows weak positions and is overshadowed by another currency called Ripple.
Some lesser-known tokens, such as “Dogecoin” make a big raise, while a growing list of businesses is trying to get on board of the crypto craze by adding ‘blockchain’ to their name and announcing initial coin offering (ICO) plans. Hoskinson warned of riks investing in cryptocurrencies and predicted a market crash at some point of time.
But once the weaker tokens that lack substance fail and fade out, he believes the crypto market will only get stronger.
Hoskinson now runs blockchain research firm IOHK, which manages cryptocurrencies such as Cardano’s ADA token.
The last year showed an incredible rise of cryptocurrencies due to the capital rush into crypto market.
That has pushed total market capitalization of all crypto-tokens to over US$727 billion as of Jan. 10, with bitcoin accounting for a third, according to Coinmarketcap.com.
This week cryptocurrency fans saw some other good news. Bloomberg informed, that Line Corp from Tokyo is going to integrate digital currencies into its messaging platform. The report said that Line has discussions with multiple companies to use cryptocurrencies for payments.
On Monday there was a rumour that Japanese company is going to partner with South Korean exchange Upbit.
The news comes after Facebook CEO Mark Zuckerberg recently expressed interest in ‘studying’ cryptocurrency, sparking speculation about the potential for adopting blockchain technology on Facebook’s platform.
There was other news that privacy-focused chat app Telegram has plans of multi-billion dollar ICO for launching its own cryptocurrency.
