Benzinga - Alex Konanykhin, the founder and CEO of Unicoin, on Tuesday compared the nascent crypto market to the early days of the Internet, predicting a shift towards more sustainable and robust business models in the cryptocurrency sector.
Speaking at Benzinga Future of Digital Assets in New York City, he also emphasized the significant wealth creation potential of cryptocurrencies, particularly Bitcoin (CRYPTO: BTC).
He highlighted Bitcoin's remarkable growth, noting its 9,000,000% increase over the past decade.
Konanykhin pointed out the crypto market's rapid ascent, where it reached a peak market capitalization of over $3 trillion, but also acknowledged its current state, standing at around $1.4 trillion.
He stressed that cryptocurrencies represent a natural evolution in the history of money, transitioning from traditional forms to digital and now blockchain-based currencies.
The CEO discussed Bitcoin's volatility, attributing it to the lack of underlying assets and reliance on perceived value. He explained this volatility as a characteristic feature of early cryptocurrencies, including Bitcoin, which still holds roughly 50% of the cryptocurrency market.
Konanykhin used Bitcoin's price fluctuations as an example, noting its pattern of dramatic declines followed by significant upswings.
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Addressing the regulatory landscape, Konanykhin commented on the historical lack of stringent regulations in the crypto market, likening it to the "Wild West."
"You believe that the wild days of crypto are somewhat similar to the wild days of the Internet? Some of you may still remember the first Internet craze there. It was fast growth and a lot of enthusiasm. Some companies see parents who have cemented their leadership in certain areas and then. It was the implosion and a new generation of Internet companies took over and became leaders in that," he said.
He mentioned the collapse of major crypto exchanges like FTX as a result of this unregulated environment, leading to increased skepticism and concern among investors.
Konanykhin introduced Unicoin as a solution designed to gain the trust of institutional and traditional investors.
He emphasized Unicoin is subject to audits, and public reporting, and adheres to regulations, contrasting it with the opaque and unregulated operations of other cryptocurrencies.
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