Crypto winters weed out fakers and unnecessary hype from the market, according to Coinbase COO Emilie Choi.
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 largely refers to the slowdown in the market, when assets dip amid brutal sell-offs and which usually follow a massive 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.
In the cryptocurrency space, the last major crypto winter happened beginning early 2018 after Bitcoin and other digital assets experienced an explosive run to new highs in December 2017. The recent sell-off that has seen Bitcoin retreat below $50,000 and invalidate calls of $100k has analysts pointing to a crypto winter that could extend into the first quarter of 2022.
As of writing, Bitcoin remains weak around $47,000, with Galaxy Digital CEO Mike Novogratz recently suggesting prices could find support around $42,000. Meanwhile, Kraken CEO Jesse Powell also believes further rot is possible and points to prices below $40,000 as a great buying opportunity.
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.