Charles Hoskinson says, Cryptocurrency market will see Crash and then Consolidation
January 9, 2018 9:21 am
Charles Hoskinson told to CNBC that:
“My personal opinion is that we’re going to see a consolidation after a crash.”
Hoskinson now runs blockchain research firm IOHK, but was previously in charge of Ethereum, which develops the underlying technology for the cryptocurrency Ether (also known as Ethereum).
A number of altcoins — including Cardano, a cryptocurrency managed by Hoskinson’s company — have surged largely in recent weeks as investors look beyond the most leading cryptocurrency bitcoin. Ripple’s XRP, for instance, temporarily overtook ether as the second-largest cryptocurrency in December.
“What’s going to occur is a lot of these ventures that don’t have strong fundamentals, don’t have the 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.”
But the chief included that most of these cryptocurrency projects might not fail anytime soon as they have enough funding behind them to support themselves.
“The problem is a lot of them have a lot of money, It’s really hard to fail when your burn rate is $5 million or $10 million a year, and you have $1 billion of capital.”