Charles Hoskinson is currently active at blockchain research firm IOHK, but before that he was active as one of the founders at Ethereum. According to Hoskinson, the crypto market will crash at a certain point where inferior projects fall apart. Then the market can consolidate.
The growth of the crypto market is going very fast, says Hoskinson. The recent rally to a market capitalization of more than $ 800 billion was mainly driven by the advance of the smaller crypto coins. But that increase is 'unrealistic' according to the former co-founder of Ethereum.
'What we're going to see is that many of these projects do not have strong foundations, no good technology, unrealistic projects and will eventually run against a wall that they can not get over' - Charles Hoskinson.
There will therefore be a consolidation after a crash on the crypto market.
When that crash comes, Hoskinson can not say. Many of these projects have a lot of money. If you only have $ 5 million to $ 10 million in cash burn per year, you can survive for a long time if you have $ 1 billion in capital.
Ethereum's co-founder says the crypto market will crash and consolidate from CNBC.
Foto Credit: Coinspeaker