Following Terra’s failure, Binance US CEO Brian Shroder predicts that other cryptocurrency companies will be liquidated in the upcoming months. However, he also describes two cryptocurrency initiatives he believes in.
CEO of Binance US: Not everyone will thrive in the business
In a recent interview, Brian Shroder discussed his opinions on the market. The multiple tragic occurrences that have occurred in the cryptocurrency realm over the past few weeks, according to Shroder, do not surprise him.
Shroder draws a parallel between current Bitcoin occurrences and the dot-com boom. He continues by saying that difficulties frequently come with rising acceptance of the new asset class. Shroder asserts the following in this context:
There are hiccups constantly because adoption curves function just like that. When a new technology is developed, and money starts to pour in, several bets are being placed, and not everyone can or will win.
State Of Crypto Space After Terra Collapse
LUNA and TerraUSD (UST), two tokens from the Terra ecosystem, have collapsed, causing the value of the cryptocurrency market to fall. The issue arose when UST, Terra’s algorithmic stablecoin, lost its peg to the dollar, which impacted all cryptocurrencies in use.
Sadly, Three Arrow Capital, a well-known cryptocurrency project, was also impacted (3AC). Since 3AC made a significant investment in Terra, as is evident from Kriptokoin.com, the corporation has now submitted paperwork for liquidation.
Celsius Network was also hurt by the Terra problem the company was experiencing. As a result, token withdrawals, transfers, and exchanges among users on its platform had to be put on hold.
In addition, many Bitcoin businesses have made significant personnel reductions in response to the decline in cryptocurrency values. They believed that things would start to calm down by doing this.
Shroder: More Firms to Liquidate
The Terra incident has significantly impacted the cryptocurrency industry, which is being managed by associated businesses. In the meantime, stringent monetary policies were put in place by US financial authorities to fight inflation.
Shroder commented on recent events by saying that “things have gradually become survival of the fittest.” He, therefore, forecasts that more cryptocurrency businesses will fail.
Binance US backs more Explicit Altcoin regulations
The most important thing, according to Shroder, is that Binance US favors more open regulations for the developing market.
In his opinion, it will significantly boost confidence while safeguarding investors. Shroder explains:
“We favour unifying these under a recognized definition. You may therefore assert that it is a stablecoin that the US Congress has approved.”