Tech
Most crypto companies will ‘fail’ after years of industrial Ponzi schemes: Palantir co-founder
More crypto companies will fall Bankruptcy Ponzi SchemeBut cryptocurrency will remain an important tool for the global exchange of funds, one venture capitalist told Fox News.
“In general, I think most things are doomed to failure,” said Joe Lonsdale, investor and co-founder of software company Palantir. The various lenders of cryptocurrencies, crypto tokens, and other parts of the ecosystem were “a Ponzi scheme and made absolutely no sense.”
“This is what you expect in any situation where something goes wrong,” he added.
WATCH PALANTIR co-founder predicts the future of crypto exchanges:
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In recent years, according to Lonsdale, “crypto projects have been valued not on the basis of cash flow, not on the basis of value creation in the economy, but on the basis of what people are going to pay for it.”
Sam Bankman-Fried, the founder of FTX, has faced legal consequences for his involvement in the collapse of FTX.
(Jenna Moon/Bloomberg via Getty Images)
FTX, a Bahamas-based exchange, Chapter 11 Bankruptcy Application In early November, losing at least a billion dollars.
Another major crypto company, BlockFi, also She declared herself bankrupt last week. Other crypto companies such as Celsius Network and Voyager Digital follow Chapter 11 procedures.
According to Lonsdale, some of the companies that filed for bankruptcy “were heavily corrupt”, though he named only FTX. “There is a good chunk of crypto in the long run, but most of what we have seen in crypto over the past three, four, five years has been a speculative bubble driven by cheap money and a lot of these Ponzi schemes.”
Joe Lonsdale, co-founder of Palantir, believes that digital currencies still have a strong future despite the industry facing a series of corporate crises.
(Fox News Digital/John Michael Rush)
Despite recent upheavals cryptocurrency marketsCryptography-based technologies will continue to expand their capabilities, Lonsdale said. Lonsdale said Blockchain technology used in cryptocurrencies allows money to be transferred online without the need for traditional government or banking infrastructure, opening up an important new way to move money around the world.
“It makes sense to have more decentralized power and have something like bitcoin,” he said. “He helped people survive money from RussiaFrom Venezuela, from China.
“It gives more freedom to the financial system than really bad governments,” Lonsdale continued.
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Blockchain technology According to the venture capitalist, this will remain an important part of the future.
“This ecosystem, in the long run, I think you will have some of these things that will be good for the world,” he said. “But that’s not all we see now.”
To see the full interview with Joe Lonsdale on the future of crypto, click here. Here.
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