The thought leader behind Cardano (ADA), Ethereum Classic (ETC), and much more in the cryptoverse is feeling confident that an acute market crash is on the horizon. Afterwards, Hoskinson asserts a period of consolidation would see cryptocurrency prices rise to healthy levels once more.
Hoskinson: “Unrealistic Projects”
As the CEO of IOHK and a popular cryptocurrency visionary, few people are as plugged into the ebbs and flows of the crypto ecosystem as Charles Hoskinson.
And while Hoskinson’s been busy as of late working on his “blockchain 3.0” Cardano project, he certainly hasn’t missed the meteoric price surges that have hit the global crypto markets like lightning over the past few weeks.
Accordingly, Hoskinson predicted in a new press interview that the space is “going to see a consolidation after a crash.”
Why? Because to Hoskinson it seems clear that cryptocurrency investors are flooding out from bitcoin and into altcoins right now. And he thinks many of these altcoin projects are going to eventually implode, bringing the markets down temporarily with them:
“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.”
But with the massive amounts of money some of these altcoin projects have raised, Hoskinson said his projected crash won’t necessarily happen sooner rather than later:
“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.”
Dogecoin Creator Highlights Dizzying Growth
With the “jokecoin” dogecoin stunningly hitting the 1 billion USD market capitalization days ago, the entire cryptocurrency ecosystem has some soul-searching to do.
At least that seems to be the suggestion of dogecoin creator Jackson Palmer, who noted in a recent tweet that his former project’s new milestone shows that unrealistic mania is reaching a fever pitch in the ongoing cryptocurrency boom:
“I have a lot of faith in the Dogecoin Core development team to keep the software stable and secure, but I think it says a lot about the state of the cryptocurrency space in general that a currency with a dog on it which hasn’t released a software update in over two years has $1 billion market.”
Could this be a sign that the pre-conditions for a market crash are currently being set? Perhaps so. But nothing is ever guaranteed in crypto.
What’s your take? Do you share Hoskinson’s sentiments? Or are you of the mind that mainstream adoption has reached critical mass? Let us know in the comments below.
Images via Bloomberg, Twitter