Charles Hoskinson, the founder of Cardano, reckons only legit cryptocurrencies will make it through the current market mess. He's not mincing words.
In an X post on August 5, Hoskinson warned of a potential domino effect. Japan's economic woes could spill over into broader markets, including crypto. But he's not all doom and gloom.
"Japan blowing up could cascade into the greater markets, including crypto on the short term," Hoskinson wrote. He added, "Moonboys will flood X and bark like babbling idiots about how project founders have failed and are evil; regardless, the macroeconomic caravan goes on."
Hoskinson believes short-term market jitters are par for the course. The long-term outlook for cryptocurrencies remains rosy, especially for those with "integrity and utility".
His stance reflects a growing sentiment in the crypto world. The industry is maturing beyond mere speculation. Current market conditions will separate the wheat from the chaff.
Only cryptocurrencies offering real value will survive. Hoskinson remains bullish on the long-term prospects for cryptocurrencies. He argues they represent a fundamental shift away from traditional fiat systems.
Hoskinson's comments come amid a global market sell-off. On Monday, Japan's Nikkei plunged 12%. It's the biggest one-day drop since the Black Monday crash of 1987.
The rout spread like wildfire. Asian markets fell first, then European and U.S. markets followed suit. South Korea and Taiwan saw stock market declines exceeding 8%.
U.S. markets opened with major losses. The Dow Jones fell over 1,000 points. The NASDAQ dropped 6%. The S&P 500 decreased 4.2%. European markets slumped to a 6-month low.
The crypto market isn't faring any better. Bitcoin, the big daddy of cryptocurrencies, fell 15.72% in 24 hours. It dropped from around $60,896 on August 4 to $51,325 on August 5. It's since recovered slightly to $55,114 at the time of writing.
Other crypto assets like Ether, Solana, and Cardano also took a beating. They experienced substantial price drops.
The Crypto Fear & Greed Index paints a grim picture. It plummeted into 'Extreme Fear' territory, hitting a dismal score of 17 out of 100. It's the lowest since July 12, 2022.
This index is a key indicator of market mood. Its current reading underscores the bearish sentiment among investors. The crypto world is holding its breath.
In this climate, Hoskinson's words carry weight. The market might be in turmoil, but he's betting on substance over hype. Only time will tell if he's right.