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Billionaire founder of FTX reveals cryptos that will survive the next crash - Sam Bankman-Fried
The crypto protocols and projects that will stand the test of time are those that can scale to allow for massive adoption should over a billion people use blockchain, said Sam Bankman-Fried, CEO and founder of FTX.
FTX is one of the world's largest cryptocurrency exchanges and had recently acquired the rights to rename the American Airlines Arena in Miami, home to the NBA team Miami Heat, to FTX Arena.
“There will always be more crashes, there will always be more bull runs. My best guess is that over the next few years, we may see substantial institutional adoption of cryptocurrencies. I think we’ve seen a number of large institutions soft commit to using them one way or another,” Bankman-Fried told David Lin, anchor for Kitco News. “Although they haven’t started implementing that yet, I think potentially provides a big set of inflows on the medium to long term horizon over the next couple of years.”
Bankman-Fried outlined the types of cryptocurrencies that may survive another systemic crash.
“The projects that you see surviving the best are the ones that have huge, really loyal followings and the ones that have really important use cases. I think the ones that seem hype-driven often crash the hardest, but when you look at projects that have a lot of real adoption, or have the potential for a lot of real adoption, those are projects that loyalists are are going to be backing, even during bear markets,” he said. “And…anything else that has a key feature that can’t be replaced by another competitor.”
Bankman-Fried noted the importance of scalability for a cryptocurrency as mass adoption eventually takes place.
“If you look at what it would take to have a billion people use blockchain infrastructure, if each one of those is being used in the same way that we use social media or finance, that’s going to be creating probably millions of transactions per second for the blockchain,” he said.
Solona could be one such protocol, Bankman-Fried said.
“That’s what is most compelling about [Solana] is that it does have the potential to scale to where things are need to scale to if blockchain gets huge and it has the potential to host DeFi applications for hundreds of millions to billions of people,” he said.
For more information on Solana and FTX, watch the video above.
Follow David Lin on Twitter: @davidlin_TV (https://twitter.com/davidlin_TV)
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