Crypto Market Cleansing: Weak Projects Falling Out

The crypto industry is facing its most severe downturn to date, according to Eli Ben-Sasson, co-founder of Zcash and CEO of StarkWare. In his view, this crisis could have a cleansing effect on the market.

Ben-Sasson points out that weak projects are now failing en masse, forcing teams to shut down or go bankrupt. Even established players like StarkWare itself had to reduce its budget recently.

The exit of young startups from the market is just the beginning of a broader shift. Ben-Sasson also expects traditional financial institutions to continue losing interest in crypto until at least the U.S. midterm elections, which could make them even more cautious if Democrats gain a majority.