“When These Are Over, Most of the Companies in the Cryptocurrency Market Will Be Gone”
John Wu, head of Ava Labs, the developer company of the Avalanche (AVAX) altcoin, answered Bloomberg’s questions in an interview he attended. Asked whether people’s concerns have increased in the face of the current situation in the industry, John Wu replied, “There really is a lack of confidence in the industry right now”:
“There were many people who did not trust this industry from the very beginning. With what has happened in the last months, these people have tried to reconcile the events with the whole industry. I am at the center of the business and I talk to many representatives. I can say that these people represent a small part of the total. However, this is a small part of the control system. They have so much power because they’re in centralized institutions.”
Wu also considered the court’s decision to keep the list of the 50 largest creditors confidential in the FTX case:
“As a name from the cryptocurrency world, I’m always a supporter of transparency under normal circumstances, but I think it’s good to keep names in this regard, because if they are disclosed, a ‘bank run’ may occur to these companies.”
Wu explained his thoughts on whether the crisis in the crypto money industry will spread to more companies:
“I think Genesis is more important to capital markets than FTX. Genesis was the biggest lender in the market. If Genesis goes bankrupt, the industry could go back years. Maybe we need to wait for a new savior from traditional markets.”
Wu answered his question about the state of the industry if the Bloomberg server could not be leveraged as much as before:
“We’re going back to the previous cycle, I’m talking about the period from 2015 to 2018. Leverage needs to be contained. Leverage is not bad in every economy and in every market. You have to borrow some money or there will be no growth.”
Wu also made a striking claim about the future of the cryptocurrency market:
“When all this is over, 80% of the companies in the cryptocurrency market will be gone. The rest will take on a leadership role in the industry. The rest will have to get along with the regulators as well.”
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