Digital currency prices have crashed massively since their peak in November sparking a new “crypto winter” — a period of prolonged depressed prices.
But Edith Yeung, a general partner at Race Capital, said it will be a “warm winter” because it will push out people from the industry who were there for short-term gain.
However, the crypto market has been plagued by liquidity issues and the bankruptcy of major players including Celsius and hedge fund Three Arrows Capital.
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The crypto winter will be a ‘warm’ one, says venture capital firm
A crypto winter is here but it’s going to be a “warm winter,” according to one crypto bull.
Bitcoin may have fallen by more than half from record levels, but “there’s so much more than that,” said Edith Yeung, a general partner at Race Capital.
“In some sense, the ‘warm winter’ is basically going to push out everybody who really [wants to be] there for short-term gain,” she told CNBC’s Street Signs Asia last week, highlighting that cryptocurrency is a long-term play.
Yeung said she remains bullish long-term on digital tokens because its appeal lies in the fact that “crypto is really about Web3.”
Web3 has become a buzzword among those in the crypto industry. Proponents say it’s the next generation of the internet, one that is “decentralized” and not owned by a few big technology giants.
The term crypto winter refers to a prolonged period of depressed digital coin prices in the market.
Cryptocurrencies have lost around $1.9 trillion in value since the height of a massive rally in 2021.
Bitcoin, the world’s biggest digital coin, is about 68% off its all-time high of nearly $69,000 in November.dhaka
Advocates suggest that crypto and blockchain technology could be a big part of that. For example, a Web3 service may run on a particular blockchain such as ethereum or solana. Users may be required to hold tokens associated with those blockchains in order to use a particular service or even have ownership in that app or company.