The crypto "purge" has already been and gone, says OKCoin CEO

03 Jun, 2019
by Will Heasman
Opinion
The crypto purge has already been and gone, says OKCoin CEO

The cryptocurrency industry is forever being compared to that of the dotcom era, and while some parallels are undeniable - such as its meteoric rise – its the subsequent fall that sends shivers down the spine of even the most hardened crypto investor. However, Tim Byun, CEO of OkCoin, believes that the worst of the proposed purge may be over and done with…

In an interview with Invest in Blockchain Byun shared his thoughts on the state of the industry and its future. Following one particular question pertaining to the Ripple CEO’s comments on a crypto cull, due to failing projects, Byun offered his insight as to why he believes 2018 was the extent of any “purge”.

“I think the purge has occurred in 2018 and there will be more as the projects are like small businesses that have a high propensity to fail, though some or a few will do very well,” said Byun, “another good example of this occurred in the dotcom era with e-commerce startups. I would accept the quote above if the term “liquidity” represents traction, which will be evident when the projects deliver value or good uses.”

The idea of a crypto cull has been abounding the community for a while; worrying precedents set during the dotcom bubble of 2000, have somewhat overshadowed the crypto space, threatening to strike at any point.

The dotcom bubble burst on the 10th March 2000, shortly after the Nasdaq index posted its high of 5048 points. This was the breaking point for the large tech firms such as Intel, Dell, and Cisco who decidedly had enough of the long game, selling their stocks and causing panic selling en mass.

In the aftermath, hundreds of companies liquidated what little capital the had left, and went completely under by 2004 only 48% of dotcom companies were left standing, albeit on their last leg.

The parallel between the crypto industry and that of the dotcom era was echoed a lot during the bear market of 2018, and perhaps for good reason. If the purge is indeed over this could spell good news for the future of the crypto industry.

What do you think? Will we see another purge reminiscent of the dotcom bubble? Or has the worst of the storm passed? Let us know your thoughts in the comments!

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