According to Emilie Choi, Coinbase COO, Crypto Winters eliminate fakers from the market and remove unnecessary hype.
The Coinbase exec’s comments come at a time cryptocurrencies continue to battle bearish pressure as people sell amid broader nervousness.
Coinbase chief operating officer Emilie Choi says true crypto believers and seasoned holders have no problem going through a “crypto winter,” noting that this period only makes the ‘OGs’ even more focused on building the ecosystem.
A crypto winter is essentially a slowdown in market activity that sees assets drop amid severe sell-offs, which often follow a huge bull run. It’s when digital asset prices crash and begin to typically hover around certain lows for long periods, essentially throwing in a bear market cycle.
After a dramatic rise in digital assets and Bitcoin’s December 2017 high, the crypto space experienced its last major winter. Analysts believe that the crypto winter could continue into the first quarter 2022, given Bitcoin’s recent fall below $50K and invalidated calls of $100k.
Bitcoin’s current value is $47,000. Galaxy Digital CEO Mike Novogratz has recently suggested that Bitcoin could find support at around $42,000. Jesse Powell, Kraken CEO, believes that further rot is possible. He also points out the great buying opportunity at prices below $40,000
Only ‘fake’ hands worry about crypto winter
Choi, also the president of the leading US crypto exchange, notes that while OGs like Coinbase CEO Brian Armstrong “absolutely loves the winters,” it’s the opposite for fakers.
According to her, the winter is when “the fakers get out of the space, [while] the builders keep building.” This allows those focused on developments in the space to get going minus all that hype that comes with those only interested in rocketing prices, she added.
Choi also talked about crypto investing, stating that it’s okay to look for gains but this has also to be accompanied by a degree of patience. She explained that having patience allows investors to “ride out” the ups and downs.
“It’s definitely not for the faint of heart…but if you stick through it, it’s great,” she told Bloomberg TV’s Emily Chang.