The cryptocurrency industry is set to enter a phase of large-scale consolidation, and many companies will realise they are stuck at the product level rather than building businesses, Cointelegraph reported on Saturday, citing Bullish CEO Tom Farley (토마스 팔리).
Farley told CNBC in an interview that large-scale consolidation has repeatedly occurred in the stock exchange industry and that the crypto market will show the same pattern. Bitcoin is currently trading at around $69,405, down about 45 percent from its October 2024 record high of $126,100. Farley said consolidation should have started earlier, but overvalued companies delayed the market.
He said companies without growth once demanded a valuation of $200 million on $10 million in revenue, adding that the illusion will now be shattered. Companies need to merge and grow in scale to survive, he said. But large-scale consolidation could also lead to layoffs and internal turmoil, as well as the absorption of inefficient projects.
VC investors are also taking a cautious stance. Eva Oberholzer (에바 오버홀처), chief investment officer at Ajna Capital, said VC firms are investing more selectively as the crypto market enters a mature stage.
Chi-gyu Hwang
delight@d-today.co.kr