Ethereum co-founder Joseph Lubin is confident that the currency’s future is bright. In a recent interview with Bloomberg, the tech figure discussed his current ventures, the alleged causes behind the recent crypto market crash, and what he thinks could happen next.
Joseph Lubin & Consensys
After working on Ethereum, Lubin left the currency in the hands of colleagues like Vitalik Buterin and moved onto other ventures including the development of ConsenSys, a platform designed to help startups build on top of the Ethereum network. He says the company has over 1,100 employees who work to develop infrastructure for the Ethereum ecosystem. This includes consulting for enterprises, designing new products, and educating governments and central banks. He says that running ConsenSys cost just shy of $100 million last year, though he expects prices to grow in the future.
At its peak, Ethereum was trading for over $1,400 just last December. This was a stellar time for cryptocurrency, with most major entities experiencing solid and consistent price hikes that ultimately led the total market cap to reach the trillions. Bitcoin was also at its highest position, trading for just shy of $20,000.
Nothing Good Lasts Forever
Since then, cryptocurrencies have continued rapid descents into the low prices we are currently seeing. At press time, bitcoin is trading for just over $6,400, which is a major improvement over where it stood yesterday ($6,090). Ethereum is also at an “improved price” of $390 – about $40 higher than where it was 24 hours ago.
Ethereum did get another taste of glory last February when the currency rose beyond the $1,000 mark for the first time since its December peak. Many startups were building their networks on the Ethereum blockchain and were selling their newly established tokens in exchange for ether via initial coin offerings (ICOs).
The main problem is that several of these ICOs turned out to be very speculative; downright fraudulent at times, ending their projects halfway through while disappearing with the funds and investments they received. In total, people have been cheated out of roughly $100 million through fraudulent ICOs.
What About Those That Were Real?
Those that stuck around, however, are now cashing out, and selling their ether coins in exchange for fiat capital to build their businesses. The consistent sell-offs are having massive consequences on the currency’s price, which have led to the price slumps that now seem to occur daily. It is estimated that the currency fell by as much as 27 percent since last week alone.
Lubin isn’t bothered by any of this, however. He states that the recent price slumps are all part of the market bettering itself and entering a healthier state. He says the market drops have led to the deaths of speculative investments and bubble conditions, and that the market is more legitimate than ever.
The Market Is Fixing Itself
“We’ve seen six big bubbles, each more epic than the previous one, and each bubble is astonishing when they’re happening, but when you look back, they look like pimples on a chart. With each of these bubbles, we have a tremendous surge of activity, and that’s what we’re seeing right now.”
Figures like Phillip Nunn – CEO of the investment firm Wealth Chain Capital – agree. He states that the cryptocurrency boom of last year is officially over, and that this is a good thing because it will lead to the end of smaller, less prominent altcoins the space doesn’t need:
“The boom seems to be over for now, and I personally welcome it. The market is telling us something loud and clear. We do not need 1,000 different altcoins, and the crash will most certainly get rid of these. I firmly believe the market will sustain itself; now is the time for investment while prices fall.”