- According to Morehead, whose company handles assets worth around $5.1 billion, the rock-bottom in the crypto market happened in May and June when the system’s pressures were at their worst
The Battle is Almost Over
The worst of the cryptocurrency collapse, according to Pantera Capital CEO Dan Morehead, may have passed. According to Morehead, whose company handles assets worth around $5.1 billion, the rock-bottom in the crypto market happened in May and June when the system’s pressures were at their worst.
Morehead believes that the battle is almost over. Things get liquidated quite quickly in leverage situations in general and in DeFi [decentralized finance] smart contracts in particular. And the market has been declining for eight months now. Whatever strains we were going to experience in the system effectively peaked in May and June because the top was in November. Companies that are being liquidated in bankruptcy court already exist.
Statement by The CEO
We feel as though we have seen everything there is to see. The markets may resume trading based on fundamentals. According to the CEO of Pantera Capital, almost all decentralised financing (DeFi) protocols fared well throughout the worst months for the cryptocurrency market this year, whereas centralized crypto lenders fell short.
CEO stated that there are numerous blockchain doubters, and many of them are advocating the idea that DeFi failed. And that’s not truly the case. There are undoubtedly some faults in the blockchain ecosystem, but centralized loan counterparties are virtually always at blame. which, as you may know, are basically just banks. Some of these organizations ran just like banks and accepted short-term deposits for that amount of time. After that, there was the customary bank run. People were investing in products that lacked liquidity because they needed their money quickly.
The centralized loan firms were essentially what failed, whereas practically all of the DeFi protocols performed admirably.
Source: https://www.thecoinrepublic.com/2022/08/01/pantera-capital-ceo-believes-crypto-industry-is-hitting-its-rock-bottom/