Just As Bitcoin Rebound Starts, Legendary Crypto Billionaire Says New Crash Is Imminent
Last Updated on 10 July 2022 by CryptoTips.eu
According to popular calculation by Bloomberg, FTX founder and known crypto savant Sam Bankman-Fried lost about 40% of his wealth during the 2022 crypto crash. Now, just as Bitcoin, Ethereum and other major coins are starting to rebound, Sam explains to CNN why he expects another crash soon.
Billions lost
On November 9th of last year, when Bitcoin reached a record high of almost $69,000, Sam Bankman-Fried, who holds vast amounts of crypto coins, was hypothetically worth $15 billion. By now, as the world’s largest cryptocoin is changing hands for some $21,000, that amount has dwindled to about $8 billion. Not bad of course, but a 40% loss on all of his holding nonetheless.
Now, as Bitcoin has in the past few weeks been able to rebound from a $17,000 low, Sam is sounding the alarm. Speaking to CNN earlier this week, he explained why he believed a new crash could be imminent because “a substantial fraction” of cryptocurrencies are “empty products” with “real crash potential.”
When you have something that’s basically an empty product, which is true of some places and assets in crypto, that is something that certainly has real crash potential,
By market cap or volume, a pretty small fraction of the crypto eco-system represents this; however, by number of assets, it’s a substantial fraction.
Sam explains furthermore that some coins do have long term potential, but that this can only be seen when the bad coins are once again rooted out, just like in the ICO crash of 2018.
What I was pointing at is how many of these things are basically purely economic speculation with no real use case potential, said Bankman-Fried. It’s not always obvious which is which. We can do what we can to try to distinguish them and offer assets that are healthy for the ecosystem but we’re not going to be perfect at that, no one will.
