Hindsight is always 20/20 but on November 2, 2022 Kathleen Breitman co-founder of the blockchain Tezos made a statement to CNBC that now looks prophetic. In the interview she stated "Crypto winter is only going to get worse" and wow was she right! At the time of her interview, the reasoning she gave was the same that many people had: the Fed sucking liquidity out of the markets and the damage that the easy money policies had done to asset evaluations.
Nowhere in her interview did she mention FTX though instead, she highlighted the more significant and broader issues facing crypto. Organic growth, created and driven, by applications that are truly useful. When noting this she pointed out how applications like OpenSea have seen the transactional volume plummet from billions a month to only a couple hundred million all within a year. Who would have thought that she would have been spot on except not in the way she really highlighted but rather the current state of the industry.
FTX has been exposed as something she mentioned. Cheap money driving up evaluations without organic growth ie applications that are truly useful. Personally, I find comments like what she made super eerie looking back at it since she was so spot on. The fallout from FTX and its impacts on other blockchains, exchanges, and projects have still yet to be fully understood and will take some time to figure out. Solana for example was hammered even though nothing was wrong with that blockchain itself rather it was the fact that FTX and Alameda Research were so intertwined with its early development. Solana should be able to bounce back as it has continued to perform but only time will tell if it is able to break free of the image people have about it.
With the fall of FTX, I have to admit I really am starting to see what she did in these evaluations being way way way out of touch. The days of centralized exchanges having tokens I think will go the way of cloud mining Bitcoin and disappear. Realistically their value is decided upon by the exchange and not by market factors. When market factors seem to really get a say in their value it seems to absolutely destroy said value.
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