The lack of proper regulations on crypto exchanges is exacerbating the risks and challenges in the crypto space.
In a bold and controversial statement, Caitlin Long claimed that 99% of the crypto industry should be wiped out to decrease the buildup of leverage and improve the future advancement of the industry.
Industry Reform is Demanded to Achieve Sustainability
Caitlin Long, founder and CEO of Custodia Bank, a crypto asset banking company, has called for a seismic shift in the cryptocurrency industry and its practices. The CEO strongly suggested that only 1% of the cryptocurrency industry should be allowed to operate, while 99% of the industry should be destroyed and most of the industry’s cryptocurrency companies “defunct.”
In a heated interview with Bezinga, Long was adamant about her controversial views on the cryptocurrency industry, stating that the industry had enormous potential but that cryptocurrency companies operating using highly leveraged trading activities were regressing significantly. Long stated the following:
“I had a debate with a prominent person. I said, ‘Look, 90% of this industry still needs to go, and he said it’s 99%, and I think that’s right.’ I mean, whether it’s 90% or 99%, you see the point, there’s still a lot of garbage that needs to be eliminated,” Long said.
Long Compares the Crypto Industry to the 1999 Tech Stock Bubble
Caitlin Long has compared the current crypto industry to the tech stock bubble of 1999, the one that coincided with the growth of Internet adoption and increased 800% in investments, attracting investors from prominent companies around the world.
After peaking, the stock market plummeted 740%, leaving most investors and companies bankrupt and shut down. Long compares this stock market crash to the cryptocurrency market crash in 2022, in which Bitcoin fell by approximately 70% and major altcoins by 80% to 90%, causing major companies and investors to go bankrupt.
She also stated that the crypto industry would not be successful if it continues to amplify trading activities through leverage while allowing unregulated exchanges to operate.
“In some ways it is a repeat of the 1999 technology stock bubble, with so much garbage. And it won’t be successful, and it needs to be eliminated, but the markets are eliminating it,” Long said.
Long suggested that the lack of proper regulations on crypto exchanges is exacerbating the risks and challenges in the crypto space. Additionally, she revealed that she supported the US Securities and Exchange Commission’s (SEC) recent crackdown on crypto exchanges in the industry.
However, the CEO has not proposed a total annihilation of the crypto industry, just a significant part of it. When asked about her opinion on the Bitcoin cryptocurrency, Long stated: “I don’t really care about the price. It is the least interesting aspect of this technology. “I’m more interested in it as a technology.”
Next Halving of Bitcoin (BTC) Will Have a Greater Impact than the Previous Ones
In another vein, earlier this month Long stated that the upcoming bitcoin (BTC) mining reward halving event could have an even greater impact than previous halvings.
“Bitcoin will be halved. And then what happens? If you really understand the mechanics, miners turn off machines that are currently tremendously profitable, but will no longer be profitable the moment the halving occurs. That’s not something anyone is prepared for.”
By Leonardo Pérez