CEO of blockchain firm Tezos says the ongoing crypto winter is “only getting worse” as the industry readjusts to a world of higher interest rates.
Kathleen Breitman told CNBC that “easy money” from venture capitalist profit-seeking and low-interest rates had artificially inflated the valuations of many crypto firms.
In relation with fall in price of crypto assets this year, Breitman said “A lot of this was inflated on cheap money, and a lot of this was backed by basically, like, VCs trying to pump.”
She also mentioned that even if Fed halts rate hikes next year, only a “small minority” of crypto applications that are truly useful and can organically grow users will succeed.
Breitman said, usage of network increased in 2021, fueled by demand from art world, where digital artists are shaping and trading art on the blockchain.
Some industry experts believe the recent price stabilization of Bitcoin following massive volatility over the past four months, has pushed the industry.