Why This Bank CEO Wants 99% Of The Crypto Industry Gone

by ChainChirp
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In a daring and contentious assertion, Caitlin Lengthy has asserted that 99% of the crypto business ought to be eradicated to lower leverage buildup and enhance the business’s future development.

Trade Overhaul Demanded For Sustainability

Caitlin Lengthy, Founder and CEO of Custodia Bank, a crypto asset banking firm, has known as for a seismic change within the crypto business and its practices. The CEO emphatically steered that only one% of the crypto business ought to be allowed to function whereas 99% of the business ought to be destroyed and nearly all of crypto corporations within the business “flushed out.”

In a heated interview with Bezinga, Lengthy was adamant about her controversial views of the crypto business, stating that the business had monumental potential however was being set again considerably by crypto corporations working utilizing extremely leveraged buying and selling actions. 

Lengthy said that she had an energetic dialogue with a distinguished particular person who shared her views and supported the notion that almost all of the business must be purged for it to thrive.

“I had a debate with a outstanding individual. I mentioned, ‘Look, 90% of this business nonetheless must go away, and he mentioned it’s 99%, and I believe that’s proper. I imply whether or not it’s 90% or 99%, you see the purpose, there’s nonetheless a bunch of crap that must be flushed out,” Lengthy mentioned.

Crypto total market cap chart from Tradingview.com

Complete market cap nonetheless holding above $1.03 trillion | Supply: Crypto Total Market Cap on Tradingview.com

Lengthy Compares Crypto Trade To 1999 Tech Inventory Bubble

Caitlin Lengthy has likened the present crypto business to the tech inventory bubble in 1999. Notably, the tech inventory bubble which coincided with the expansion of web adoption, rose 800% in investments, attracting buyers from outstanding corporations all around the world. After reaching its peak, the inventory market crashed by 740%, leaving nearly all of buyers and corporations bankrupt and shut down. 

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Lengthy compares this inventory market crash to the crypto market crash in 2022 which noticed Bitcoin falling by about 70% and main altcoins by 80% to 90%, ensuing within the chapter of main corporations and buyers. 

She additionally said that the crypto business wouldn’t succeed if it continues to amplify buying and selling actions by leverage whereas permitting unregulated exchanges to function. 

“It’s in some methods a repeat of the tech inventory bubble of 1999, simply a lot crap. And it’ll not succeed, and it must be flushed, however markets are flushing it,” Lengthy said. 

Lengthy steered {that a} lack of proper regulations on crypto exchanges is exacerbating the dangers and challenges within the crypto house. Moreover, she revealed that she was in help of the US Securities and Change Fee’s (SEC) latest crackdown on crypto exchanges within the business.

However, the CEO has not proposed a complete annihilation of the crypto business, only a main portion of it. When requested about her views on the Bitcoin cryptocurrency, Lengthy said, “I don’t actually care in regards to the value. It’s the least fascinating side of this know-how. I’m extra considering it as a know-how.”

Featured picture from CNBC, chart from Tradingview.com

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