John Wu, head of Ava Labs, the developer company of the Avalanche (AVAX) altcoin, answered Bloomberg’s questions in an interview he attended.
Avalanche Manager Evaluates Cryptocurrency Industry
Asked whether people’s concerns have increased in the face of the current situation in the industry, John Wu replied, “There really is a lack of confidence in the industry right now”:
“There were many people who did not trust this industry from the beginning. Together with the events in the last months, these people tried to reconcile the events with the whole sector.
I’m in the center of things and I’m talking to many representatives. I can say that these people represent a small part of the total. But this small part has so much control because they are in centralized institutions.”
Wu also considered the court’s decision to keep the list of the 50 largest creditors confidential in the FTX case:
“Cryptocurrency As a name from the world, I am always in favor of transparency under normal circumstances, but I think it is good to keep the names hidden in this regard because if they are disclosed, a ‘bank run’ may occur to these companies.”
Wu explained his thoughts on whether the crisis in the crypto money industry will spread to more companies:
“I think Genesis is more important to capital markets than FTX. Genesis was the largest lender on the market.
If Genesis goes bankrupt, the industry could go back years. Maybe we need to wait for a new savior from traditional markets.”
“When All This Is Over, 80 Percent of Companies in the Cryptocurrency Market Will Be Gone”
Wu answered his question about the state of the industry if the Bloomberg server could not be leveraged as much as before:
“We go back to the previous cycle, I’m talking about the period from 2015 to 2018. The lift needs to be controlled. Leverage is not bad in every economy and in every market. You have to borrow and lend some money or there will be no growth.”
Wu also made a striking claim about the future of the cryptocurrency market:
“When all this is over, 80% of the companies in the cryptocurrency market will be gone. The rest will take on the role of a leader in the industry. The rest will have to get along with the regulators as well.”
*Not investment advice.
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