The crypto industry is experiencing its worst purge since 2013: the mass closure of projects is a market correction.
The cryptocurrency market is experiencing its toughest period since 2013. StarkWare founder and CEO Eli Ben-Sasson states that he has not seen such a high number of projects shutting down, cutting costs, and teams leaving the market in over a decade. However, in his view, this very wave of "extinction" gives him more hope for the industry's future than ever before.
Ben-Sasson himself admits that the crisis has not spared his own creation: several months ago, StarkWare was also forced to reduce costs. Nevertheless, he categorically does not view what is happening as a disaster. On the contrary, he sees it as a long-overdue process of "healing," without which a new market boom is impossible.
Why the wave of closures is a positive signal
Analyzing past downturns, Ben-Sasson notes that market participants constantly comforted themselves with the myth that weak projects would finally be weeded out. However, until today, this had not happened. Now, he firmly believes, the industry is going through a real, not imaginary, cleansing for the first time in its history.
Notably, not only obviously weak teams are being hit. Ben-Sasson observes with genuine bitterness how strong, promising projects are struggling desperately to survive and, sadly, often losing that battle. It is this universal, ruthless "purge" that instills confidence in him. Without such painful cuts, he argues, a "new summer" for the crypto industry simply will not arrive. The current consolidation is a painful but necessary price for the long-term health of the market.
Where will the new wave of interest come from?
The key question posed by the StarkWare head is what will drive the next wave of mass interest in cryptocurrencies. His answer may surprise many who are betting on artificial intelligence or corporate blockchains.
The future, according to Ben-Sasson, lies in the realm of freedom for financial innovation. This is what he and his team work on daily, and this is what he believes in. This position fully echoes his previous statements that corporate blockchains, lacking the principles of decentralization and self-custody of assets, are doomed. He poses a direct question to the crypto community: who or what will become the new engine of growth? Time will tell, but the direction of thought is set correctly: not replacing traditional systems, but fundamentally rethinking them through freedom.
Cryptalist Expert Opinion: I fully share Ben-Sasson's position. The market is overheated with projects existing solely on venture capital money and hype. The current correction is not a crash, but a separation. Only those offering real value and a sustainable economy will survive. This is the best scenario for long-term investors and the entire industry.