More crypto companies will fall Ponzi scheme bankruptcyBut cryptocurrency will continue to be a critical tool for exchange funds globally, one venture capitalist told Fox News.
“In general, I think most things are going to crash,” said Joe Lonsdale, investor and co-founder of software company Palantir. Various cryptocurrency lenders, crypto tokens, and other parts of the ecosystem were “a Ponzi scheme, and it made absolutely no sense.”
“It’s what you would expect in any situation where you have things out of order,” he added.
The co-founder of WATCH PALANTIR predicts the future of CRYPTO exchanges:
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Over the past several years, Lonsdale said, “crypto projects have been evaluated not on the basis of cash flows, not on the basis of value creation in the economy, but on what people are going to pay for it.”
Sam Bankman-Fried, founder of FTX, is facing an onslaught of legal ramifications for his involvement in the collapse of FTX.
(Jenna Moon/Bloomberg via Getty Images)
FTX, a currency exchange based in the Bahamas, Filed for Chapter 11 bankruptcy In early November after losing at least a billion dollars.
Another big crypto company, BlockFi, too She declared bankruptcy last week. Other crypto companies like Celsius Network and Voyager Digital pursue Chapter 11 proceedings.
Some of the companies that declared bankruptcy “had a lot of corruption,” Lonsdale said, though he only named FTX. “Longer term, there is a good portion of cryptocurrency, but most of what we have seen in cryptocurrency in the last three, four, five years has been a speculative bubble driven by cheap money and driven by a lot of these Ponzi schemes.”
Joe Lonsdale, co-founder of Palantir, believes that digital currencies still have a strong future despite the industry facing a series of corporate meltdowns.
(Fox News Digital/John Michael Rush)
Despite the recent turmoil in Cryptocurrency marketsCrypto-based technologies will continue to develop more capabilities, according to Lonsdale. Lonsdale said that the Blockchain technology used in cryptocurrencies allows money to be transferred online without the use of traditional government or banking infrastructure, enabling a new and important way to move money globally.
“It makes sense to have more decentralized power and to have something like bitcoin,” he said. “He helped people get by money from RussiaFrom Venezuela, from China.
“It allows a greater kind of freedom to the financial system than really badly behaved governments,” Lonsdale continued.
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Blockchain technology It will continue to be an important part of the future, said the venture capitalist.
“This ecosystem, in the long run, I think you’re going to have some of these things that are shown to be beneficial to the world,” he said. “But that’s not all we see now.”
To see the full interview with Joe Lonsdale on the future of cryptocurrency, click here over here.