Ethereum co-founder issues stark warning about crypto after trillion dollar price crash wipes out Bitcoin, BNB, XRP, Solana and Cardano

Ethereum, the second largest cryptocurrency after Bitcoin, has not survived the brutal cryptocurrency crash that wiped out nearly $1 trillion from the market in a matter of weeks.

Subscription now for Forbes’ CryptoAsset & Blockchain Advisor And successfully navigate the bitcoin and cryptocurrency market

The price of Ethereum is down about 65% from its highs last year, a stronger drop than the price of Bitcoin. However, the other top 10 cryptocurrencies, including ethereum competitors BNB, solana, and cardano, as well as the payment currency XRP, saw a sharper decline.

Now, as prominent backers desperately try to call the market bottom, Ethereum co-founder Gavin Wood has warned cryptocurrency traders and investors that they need to “pay more attention” to the projects they are investing in.

Do you want to stay ahead of the market and understand the latest cryptocurrency news? Register now, for free CodexDaily newsletter for cryptocurrency investors and the curious

tell Wood Reuters This week during the World Economic Forum in Davos.

“Technology cannot prevent people from making mistakes but it can help those who want to better understand the realities of the world, and what they are buying.”

The recent cryptocurrency crash was partly caused by the collapse of the so-called stablecoin terraUSD (UST) and backed by the Luna coin. The pair has climbed into the top ten cryptocurrencies in recent months.

The sudden collapse of UST and Luna has raised doubts about the broader cryptocurrency market, with concerns spreading to the larger stablecoin and smaller coins such as crypto lender Celsius, which has collapsed more than 70% over the past month. The land-led crypto-currency crash has also led to fresh calls for a closer regulation of the market.

Subscribe now to Codex—Free daily newsletter for crypto enthusiasts

More from ForbesGiant Wall Street issues stark prediction for NFT after massive collapse in Bitcoin, Ethereum and $1 trillion cryptocurrency

The latest cryptocurrency boom, which started at the end of 2020, has seen a large number of scam, meme-based or value scam cryptocurrencies with traders crammed into it. Dogecoin, the meme-based cryptocurrency that was originally created as a joke, has climbed into the top ten by value, causing a stir among imitators.

This week, Scott Minerd, chief investment officer at Guggenheim, a $252 billion asset manager, warned in an interview with CNBCdescribing most of them as “junk”.

Meanwhile, Wood, who was in Davos to talk about his blockchain partnership with billionaire Frank McCourt’s Liberty Project, appeared skeptical of attempts to regulate Internet protocols.

“The Internet has no real concept of legality, because legality is something that is determined by sovereign states,” Wood said. Reuters.

Leave a Comment