Crypto’s famous name lists his predictions What awaits Bitcoin and altcoins?

Similar to when FTX crashed in November, crypto has a very busy agenda. Uncertainties remain. Ava Labs President John Wu discusses recent developments and makes predictions for the future. So what awaits the cryptocurrency market? In particular, what would be the impact of the Silvergate Bank bankruptcy?

Cryptocurrency Predictions

The head of development firm Avalanche (AVAX) asked Bloomberg’s Caroline Hyde for comment on the closure of Silvergate Bank, which he believes puts the cryptocurrency into a more difficult process. John Wu spoke about the potential fallout from the bankruptcy of Silvergate Bank, which acts as a bridge between the traditional banking system and cryptocurrencies;

“Obviously when access to the crypto ecosystem is knocked out one by one, it’s going to be much harder for all brokers, obviously for all brokers, for institutions and individuals. Like the Silvergate case. So it’s not easy. It makes the job harder.”

If you cannot transfer TL assets in your bank account to the stock market, you must use OTC counters to buy cryptocurrencies. Since this is riskier, more difficult, and more expensive than the other, it may turn people away from cryptocurrencies.

Crypto Risks Rise

Wu said the move of cryptocurrency firms outside the U.S. could be one of the consequences of banks and other intermediaries ceasing to serve the Crypto asset industry. If the headquarters of cryptocurrency companies are not working with banks, they will have to, and it will become more difficult for the large investor base in the United States to obtain cryptocurrencies.

“The problem is that if there are no intermediaries to help new institutions enter the space, it slows down the growth of the space. The other problem is that even if the balance sheet in this space is healthy, very little is needed… banking services. Cryptocurrencies are A fintech business where legitimate businesses need banking services to pay people to do what other companies do. If we eliminate the banks that help these companies do this, we remove the desire for companies to be onshore. Unfortunately, US companies will Offshore to get banking services and other things they need to continue operating.”

The head of Ava Labs said the best way forward is for the cryptocurrency industry to engage with regulators and lawmakers.

“I think we need to have a healthy dialogue. It can’t just be one way. If that happens, you’re going to bring back capital markets and innovation. Otherwise, as I said before, things will go down the drain because of certainty, rules and regulations. It continues to move overseas, which is happening in Europe and even Asia.”

Information source: compiled from COIN-TURK by 0x information.Copyright belongs to the author Fatih Uçar, without permission, may not be reproduced

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