Crypto winter will last until 2023 and possibly 2024, PayPal and Meta alum David Marcus predict
David Marcus may lead a company focused on Bitcoin, but he doesn’t see the end of the Crypto Winter any time soon.
Marcus is the CEO of PayPal and has also made crypto efforts at Facebook (now Meta). He is currently leading light parka startup in Los Angeles is creating a payments infrastructure by building on the capabilities of Bitcoin.
in one blog post published Friday on Medium, Marcus predicted among other things how the crypto sector will develop in 2023. Cryptocurrency speculators hope for a turnaround in the year. will be disappointed by his prospects.
‘Ugly’ Crypto on Display
First, Marcus looks back to 2022, noting the bankruptcy of FTX. The $32 billion crypto exchange has established itself as a leader in the field, having star athlete enlists in the military like Tom Brady and other celebrities to bolster its image. Its collapse last month shook confidence in the crypto sector and boosted calls for stricter regulation.
FTX founder Sam Bankman-Fried has been charged with eight criminal offenses by US authorities — from wire fraud to money laundering to conspiracy to commit fraud — and is expected to serve a long prison sentence.
“For crypto, it was an even more challenging year,” writes Marcus. “We have seen all the ugliness of previous years of Wall Street greed repeating with the rapid card game collapse of many companies, the most serious and shocking thing is that FTX has end the year with an extra and very unnecessary drama. .”
The crash of FTX added to an already miserable Crypto Winter. Year-to-date, Bitcoin and Ethereum, the top two cryptocurrencies, are down more than 60% and the stock of the crypto exchange Coinbase fell by about 85 percent.
Cryptocurrency recovery will take years
But Marcus felt some relief ahead.
“We will not come out of this ‘crypto winter’ in 2023 and probably not in 2024. ethics and for responsible regulations to be passed.”
Coinbase CEO Brian Armstrong also noted the bad guys in the industry earlier this month, tell the attendees at a crypto founders summit: “We have to accept as an industry the fact that, I think our industry is attracting a large number of scammers and scammers. cheat.”
As for crypto regulations, Senator Sherrod Brown, chair of the Senate banking committee, said a few weeks ago that “cryptocurrency don’t get free tickets because it’s bright and glittery…Things that look like securities, commodities or banking products should be regulated and monitored by agencies responsible for serving consumers.”
Marcus notes that consumer confidence will “take a few years to rebuild, but ultimately I believe this will prove to be a beneficial reset for the legitimate players in the industry in the long run.” .”
He added, “In crypto, years of greed give way to real-world applications. The years of creating an out-of-the-box token and making millions are over. The music has stopped. We went back to our usual program of creating real value and solving real-world problems.”
This story was originally featured on Fortune.com
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