According to Charles Hoskinson, the failure of a stablecoin project does not signal the end of crypto.
Bitcoin has dropped to a 16-month low, and altcoins have lost even more in the last week. Despite rebounding off and reclaiming some territory, the situation remains severe, according to Cardano's Charles Hoskinson.
Views of Charles Hoskinson
The market is in the midst of a new crypto winter, according to Cardano Founder Charles Hoskinson, and it may take weeks or possibly months for a bottom to emerge, after which there will be some respite. The digital asset markets, he claims, are experiencing "panicked blood in the street."
“If this is your first crypto winter, then welcome. Been through many since 2011 and they always hit like a cold ice bath. We are in the panicked blood in the street phase. It clears in weeks to months as a bottom is found. Then a long climb up the ladder.”
Retail vs. Institution
Bitcoin has succeeded in attracting institutional interest, which has been widely lauded. While regular investors continue to retain crypto in order to avoid a "unfair," "rigged" global system, the IOHK CEO feels that the entry of "Wall Street types" into digital assets has exacerbated the current crisis.
He claims that the institutional group has been selling crypto, and that most people see it as a high-risk, high-reward asset. He added,
“This was always the danger of inviting the Wall Street types in… And when the markets go not in the direction they want, they dump it. They tread crypto just like any other asset and label it as an exotic high-risk one. When the markets do not go in the direction they want, they dump it.”
The recent turn of events has been dubbed "a black swan and historic" by many. While commenting on the demise of UST, the executive stated that the failure of a stablecoin or a project exit fraud does not necessarily mean the end of the industry. The entire aim of the crypto market, according to Hoskinson, is to restore the global money system's lost trust, credibility, and stability.