More crypto companies will drop Ponzi scheme bankruptcyBut cryptocurrency will continue to be an important tool for exchanging money globally, one venture capitalist told Fox News.
“In general, I think most things are going to fail,” said Joe Lonsdale, investor and co-founder of software company Palantir. The various lenders of cryptocurrency, crypto tokens and other parts of the ecosystem were “a Ponzi scheme that makes no sense whatsoever.”
“That’s what you would expect in any situation where things are broken,” he added.
The co-founder of WATCH PALANTIR predicts the future of CRYPTO exchanges:
See more FOX NEWS DIGITAL ORIGINALS here
In recent years, Lonsdale said, “cryptocurrency projects have been evaluated not on the basis of cash flows, not on the basis of value creation in the economy, but on the basis of what people will pay for it.”
Sam Bankman-Fried, the founder of FTX, is facing an attack from legal repercussions for his involvement in the collapse of FTX.
(Jenna Moon/Bloomberg via Getty Images)
FTX, a Bahamas-based exchange, Chapter 11 bankruptcy file In early November, after losing at least $1 billion.
Another major crypto company, BlockFi, too She declared bankruptcy last week. Other crypto companies, such as Celsius Network and Voyager Digital, are following Chapter 11 procedures.
Some companies that have filed for bankruptcy “have a lot of corruption,” Lonsdale said, though he only mentioned FTX. “Longer term, it’s a big part of cryptocurrency, but most of what we’ve seen in cryptocurrency over the last three, four, five years has been a speculative bubble driven by cheap money and driven by a lot of these Ponzi schemes.”
Palantir co-founder Joe Lonsdale believes that digital currencies still have a strong future despite the industry facing a series of institutional meltdowns.
(Fox News Digital/John Michael Rush)
Despite the recent turmoil Cryptocurrency marketsAccording to Lonsdale, cryptography-based technologies will continue to develop more capabilities. Lonsdale said that the Blockchain technology used in cryptocurrencies allows money to be transferred online without the use of traditional government or banking infrastructure, enabling an important new way to move money globally.
“It makes sense to have more decentralized power and to have something like bitcoin,” he said. “He helped people survive money from RussiaFrom Venezuela, from China.
“It allows more freedom to the financial system than really bad governments allow,” Lonsdale continued.
Click here to access the FOX NEWS app
Blockchain technology The venture capitalist said it will remain an important part of the future.
“This ecosystem, in the long term, I think you’re going to have some of these things that are proving to be beneficial to the world,” he said. “But that’s not all we see now.”
To watch the full interview with Joe Lonsdale on the future of cryptocurrency, click here from here🇧🇷
“Coffee trailblazer. Social media ninja. Unapologetic web guru. Friendly music fan. Alcohol fanatic.”