The recent crypto crash has not done wonders for the industry’s reputation, which in many ways, was already on very thin ice. The thing about crypto is that for all its accomplished in recent years, there are many companies and individuals out there that refuse to see it as anything other than a speculative asset. In some cases, many view it simply as a tool for criminals and illicit actors.
The Reputation of Crypto Is Still Wavering
To an extent, we are beginning to see a level of recovery occur. Bitcoin, for example, has shot back up to around $30,500 at the time this article was written, though many analysts are warning that serious recovery cannot be expected anytime soon, and people should not get their hopes up too much. It’s going to be a while before we begin to see BTC and its counterparts trading at where they were during the end of 2021.
CEO of Muffin Pay Dileep Seinberg commented that many people now view the crypto space purely as a gamble. They can either get rich overnight, or they can see all their savings disappear in a relatively short period. He stated in an interview:
Yes, this [crypto crash and the Terra debacle] has fueled the notion that crypto is nothing but a gamble to those who do not believe much in the crypto future.
At the same time, things aren’t all bad in the sense that there are still many people choosing to remain believers in the space. Not everyone sees crypto as a gamble of sorts, and there are several individuals out there who continue to argue that the digital currency arena has all sorts of practical uses.
One of these individuals is Om Malviya, the president of Tezos India. He mentioned in a statement:
Terming cryptocurrencies as gambling is not justified when it is compared to risky assets like stocks and commodities. The sole reason for such a speculation is due to less liquidity, as fewer people have migrated into web3. More regulations in the crypto space are welcomed to avoid situations like the Terra Luna debacle, but gambling is indeed not the right term to define it.
When discussing the situation involving Luna and Terra, he said that it was an unfortunate scenario, though he felt too many influencers and VCs had gotten involved. He said:
At the end, there are fundamental values to cryptocurrencies like store of value, remittances, defi, NFTs, and web3 games.
Will More Regulation Emerge?
Seinberg says countries like the U.S. are now working to implement more regulation for the crypto space including one recent proposal that defines stable coins. He said:
This will be long term beneficial for the crypto world, probably the most crucial step to realizing the power of cryptos being stable.
