In a recent exclusive appearance on CNN Business, Ethereum’s co-founder Vitalik Buterin expressed his thoughts on the recent crypto market crash and the overall state of the crypto industry.
Buterin, who lost his billionaire status in the latest market correction, said that he was not bothered about the crash. In his defense, he noted that this wasn’t his first. In agreement, the crypto industry has witnessed several market crashes, with the most notable being the pullback of last 2017/2018.
The Ethereum boss likened the current market activity to a bubble that is “notoriously hard to predict.” According to him, the whole façade “could have ended already” or “it could end months from now.” He added:
We’ve had at least three of these big crypto bubbles so far. And often enough, the reason the bubbles end up stopping is because some event happens that just makes it clear that the technology isn’t there yet.
Speaking of Buterin’s Ethereum wealth, his wallet currently holds 325,000 ETH worth an estimated $747 million at current market prices. The value of his ETH holdings is down by over 35% from its peak value of $1.4 billion on May 12.
Crypto is here to stay
Buterin also compared the current market crash with similar events that played out four years ago. He noted:
It feels like crypto is close to ready for the mainstream in a way that it wasn’t even four years ago. Crypto isn’t just a toy anymore.
But unlike the Bull Run and then the crash of 2017/2018, the crypto landscape has changed significantly. For one, the latest Bull Run was fuelled by institutional players. Ethereum has also enjoyed its fair share of institutional adoption, eventually pushing up prices.
Some industry experts have blamed the latest market downturn on leveraged trading on derivatives exchanges. And of course, Tesla’s CEO Elon Musk also played a part in the sad turn of events.
Regarding the Musk effect, Buterin opined that the billionaire’s influence on the crypto market will eventually diminish.
Elon Musk tweeting is something that the crypto space has only been introduced to for the first time literally last year and this year. I think it’s reasonable to expect a bit of craziness. But I do think that the markets will learn. Elon is not going to have this influence forever.