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Many notable names in the crypto space present at the WEF spoke of the unsustainability of the existing cryptocurrencies.
Many crypto companies were present at this year’s World Economic Forum (WEF) in Davos compared to the last edition in 2020. Amazingly, the crypto companies’ dominance came in the midst of the current crypto crash affecting major cryptocurrencies. The UST stablecoin debacle sparked declines across the crypto market. The stablecoin also led to the whole crumble of Lune to $0 in May.
The crypto market is trembling, more investors are trooping in as others record losses, and global regulators have set their eyes on the industry. Crypto regulation is essential at this stage as there are more than 19,000 cryptocurrencies in existence. Also, there are dozens of blockchain platforms on which these cryptos are built. Some of these blockchain platforms include Ethereum and Solana.
Crypto Experts at 2022 WEF
Many notable names in the crypto space present at the WEF spoke of the unsustainability of the existing cryptocurrencies. Ripple CEO Brad Garlinghouse believes that the currency market is not sustainable. He predicted that only “scores” of crypto assets would survive. In his opinion, the world does not need thousands of cryptocurrencies as there are around 180 fiat currencies globally. As for Web 3 Foundation CEO Bertrand Perez, the currency state of crypto is similar to the early era of the internet. At the inception of the internet, there were a lot of scams, and many “were not bringing any value.” Perez said his piece at this year’s WEF:
“One of the effects of what we’ve seen last week with the Terra issue is we’re at the stage where basically there are far too many blockchains out there, too many tokens. And that’s confusing users. And that’s also bringing some risks for the users.”
On the other hand, FTX US CEO Brett Harrison said there are “a couple of clear winners” among blockchain platforms.
During the 2022 WEF, there were also comments on the TerraUSD crash, which pioneered the ongoing crypto bear run. Circle CEO Jeremy Allaire opined the crypto fiasco as showing that not all stablecoins are equal. He added that the recent happening is “helping people differentiate between a well-regulated, fully reserved, asset-backed dollar digital currency, like USDC, and something like that (terraUSD).”
Additionally, the co-founder of BLOCKv, Reeve Collins, said the TerraUSD crush would likely put an end to most algorithmic stablecoins.
The talk of crypto regulation is common among regulators of different countries, including the US SEC Commissioner Hester Peirce says the U.S. is probably mishandling crypto regulation. In her opinion, the US government needs to actively pursue regulating the burgeoning space to curb fraud. In a recent speech at the D.C. Blockchain Summit, she said:
“We can go after fraud and we can play a more positive role on the innovation side, but we have to get to it, we’ve got to get to it, we’ve got to get working.”
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