The ongoing crypto winter is serving as a much-needed purge for the industry, weeding out “unsavory operators” and sparking expedited regulatory action, according to Fred Thiel, CEO of Marathon Digital.
In recent developments, Marathon Digital‘s CEO, Fred Thiel, has opined that the ongoing crypto winter is acting as a catalyst in purging the industry of disreputable operators.
At the Financial Times’s Crypto and Digital Assets Summit, Thiel equated the turbulence in the crypto market to the dot-com boom, labeling it as a transformative phase that’s forcing regulatory bodies to expedite their measures.
While acknowledging the regulatory progress made by the E.U., U.K., Hong Kong, Singapore, and the UAE, Thiel didn’t mince words in calling out the U.S. for its slower response. He, however, anticipates a future unified global regulatory framework.
Thiel also addressed the potential impact of higher interest rates, stating it could drive a more commercialized crypto industry as investors become more risk-averse.
Last year’s crypto crashes have left their mark, with a rising number of firms meeting their demise. The latest to join this list is the exchange platform, Bittrex, which has sought Chapter 11 bankruptcy protection.
At the same conference, Blockchain Association‘s CEO, Kristin Smith, expressed a view similar to Thiel’s. She sees the upheaval as a potentially positive event, helping rid the industry of poorly managed firms while providing opportunities for other entities to acquire portions of these collapsed companies.
“I think this is a healthy part of capitalism, right? If there was a firm that was mismanaged, we can find a way to put the pieces back together or separate the pieces and divide them up.”
Kristin Smith, CEO Blockchain Association.
Despite the current market turmoil, industry leaders like Thiel and Smith perceive the crypto winter as a crucial step towards a more mature and resilient crypto sector.