Crypto Industry's Downturn May Be a Blessing in Disguise, StarkWare CEO Says

The crypto industry is going through its toughest downturn yet, according to StarkWare CEO Eli Ben-Sasson. He points out that the number of startups shutting down and budget cuts is breaking records from previous years.

Ben-Sasson notes a key difference between this crisis and previous ones: weak projects are now being forced out of business, even during prolonged market declines. This has affected not just small teams but also industry leaders like StarkWare itself, which had to reduce its budget recently.

The exit of young teams from the market is just the beginning of a broader shift. Traditional financial institutions are losing interest in the crypto market, with major funds pulling out until at least after the U.S. midterm elections.