Joe Lonsdale, Co-Founder of Palantir Technologies Software Company, believes that multiple cryptocurrency companies could end up bankrupt as most function like Ponzi schemes.
He believes that blockchain technology will continue to be a major part of the future financial system because it allows for a “revolutionary, efficient way” to transfer money around the world.
Expect more cases like FTX
In Lonsdale’s view, future collapses such as the FTX one are possible due to the absence of relevant regulations in cryptocurrency. This is despite the assumption that most projects in this space operate as Ponzi schemes.
Overall, expect most things to fall. This is what you would expect in any situation that has stuff that isn’t regulated.
There are many companies in the crypto industry that have declared bankruptcy this year. The most common reason for this is the severe consequences of the bear market. Palantir’s co-founder argued that a large portion of these entities had “a lot of corruption,” naming FTX among them.
Lonsdale believes that cryptocurrencies could bring certain benefits to the monetary system, despite the turmoil in the sector and the suggestion of scammers by many companies.
“Long-term, crypto is a wise investment, but the majority of crypto we saw over the past three, four and five years was a speculative bubble driven primarily by low money and a lot of Ponzi schemes.”
He is also a strong advocate of blockchain technology. It allows people to transfer money online without having to rely on a central third party such as a bank or government.
Lonsdale said it allows a certain degree of freedom in the financial system in the face of erratic government behavior.
Palantir accepts Bitcoin
Palantir Technologies, a public American software and analytics firm, entered the cryptocurrency ecosystem last year by accepting bitcoin for payment. The company considered buying digital assets or other assets to add to its balance sheet.
Peter Thiel, another Co-Founder at Palantir, has repeatedly displayed his support for crypto and is a bitcoin holder. German-American billionaire entrepreneur has praised the asset’s decentralized nature and said that he feels “underinvested” in them.
BTC soared to an all-time high of almost $70,000 in less than a month following his comments. The asset has been averaging $17,200 for the past 12 months, a 75% decrease from its peak level.
Author
Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.
