Vitalik Buterin, founder of Ethereum, recently told CNN that he is not concerned about the market crash, noting that we have had many such drops before.
The founder of Ethereum likened the current situation of the crypto market to a bubble, saying that knowing when it will crack is difficult to predict, adding:
THE MARKET COULD HAVE ENDED ALREADY.
IT COULD BE OVER IN MONTHS FROM NOW.
WE HAVE AT LEAST THREE OF THESE BIG CRYPTO BUBBLES SO FAR.
OFTEN THE REASON FOR THE BUBBLES TO STOP POPPING IS DUE TO SOME EVENT THAT SHOWS THAT THE TECHNOLOGY DID NOT YET EXIST.
The founder of Ethereum means here, by the bubble, the great momentum occurring around the crypto market currently and the continuous strong rise since the end of last year, which is similar to what happened in 2017.
Buterin currently owns 325,000 Ethereum, valued at $ 895 million at current prices.
This is a 35% drop from its peak value of $ 1.4 billion on May 12th.
The crypto market is not a game:
Comparing the current scene with the scene during the last “bubble” four years ago, Putrin commented about that by saying:
CRYPTOCURRENCIES SEEM CLOSE TO GETTING READY FOR THE MAINSTREAM IN A WAY THEY WEREN’T FOUR YEARS AGO.
CRYPTOCURRENCIES ARE NOT JUST A GAME ANYMORE.
Things are different for Ethereum this time around, especially with major players and institutions entering the scene and raising prices.
Although, some industry watchers blame the highly leveraged trade in derivative trading platforms for the recent downturn in the market.
Buterin added that although he is not sure, there is a possibility that Ethereum will eventually catch up and outperform Bitcoin in market capitalization.
At the time of writing this article, Ethereum’s market value is estimated at $ 313 billion – 58% of Bitcoin’s market value.
Regarding the “Elon effect,” the founder of Ethereum stated that it is something new on the scene, and that its influence will diminish in the end. He added:
THE TWEET “ELON MUSK” IS SOMETHING THAT WAS INTRODUCED TO THE CRYPTO SPACE FOR THE FIRST TIME LITERALLY LAST YEAR AND THIS YEAR.
I THINK IT’S REASONABLE TO EXPECT A LITTLE CRAZY.
BUT I THINK THE MARKETS WILL LEARN.
ELON WILL NOT HAVE THIS EFFECT FOREVER.
Regarding Dogecoin, Buterin told:
I DON’T THINK ELON HAS ANY MALICIOUS INTENT IN ANY OF THIS.