Co-Founder of “Ethereum Killer” Has Stark Warning for Crypto Buyers

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Alex Dovb­nya

The Tezos co-founder believes that cryp­tocur­ren­cy com­pa­nies are severe­ly over­val­ued after the era of “free money” 

Kath­leen Bre­it­man, cofounder of “Ethereum killer” Tezos, believes that the ongo­ing cryp­tocur­ren­cy bear mar­ket cycle is only going to get worse. 

Bre­it­man explains that the most recent bull run was “inflat­ed” by cheap mon­ey. “There was a lot of easy mon­ey going into the sys­tem,” she said. 

The Tezos co-founder believes that cryp­tocur­ren­cy com­pa­nies were over­val­ued. She point­ed to the fact that the lead­ing NFT mar­ket­place OpenSea is still val­ued at a whop­ping $13.3 bil­lion despite the fact that its sales vol­ume crashed com­pared to 2021. “There was a lot of cheap mon­ey that went in. Val­u­a­tions went super sky-high,” Bre­it­man noted.

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After the U.S. Fed­er­al Reserve dialed back its pan­dem­ic-era sup­port, many cryp­tocur­ren­cy com­pa­nies start­ed to strug­gle due to declin­ing cryp­tocur­ren­cy prices. Bit­coin (BTC), Ethereum (ETH), and oth­er major com­pa­nies are down more than 70% from their recent peaks. 

Lat­er today, the Fed is on track to announce anoth­er sig­nif­i­cant rate hikes as it per­sis­tent­ly attempts to bring infla­tion under control. 

Flight to quality? 

Bre­it­man believes that only those things that actu­al­ly have util­i­ty are going to “thrive” in the future now that low-inter­est rates are a thing of the past. She says that it is only a “small minor­i­ty” of cryptocurrencies. 

The Tezos co-founder has echoed Rip­ple CTO Brad Gar­ling­house, who once said that the world doesn’t actu­al­ly need 3,000 projects. 

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