Co-founder of Reddit Alexis Ohanian believes that the crypto bear market of 2018 was ultimately good for the space, as it weeded out those just in it for the money, and left only the staunch believers. Ohanian made his remarks in an interview with Yahoo! Finance released today.
When asked if he remains a believer in crypto, Ohanian acknowledged that we are indeed still in a “crypto winter,” meaning prices are low. But, referencing Coinbase CEO Brian Armstrong, Ohanian reinforced the idea that the bear market has led to speculators leaving the market, leaving only the strongest believers and those who are proficient in the space to build the infrastructure needed for the sector to grow.
Ohanian doubled down on his position, saying the tumultuous time for crypto has been “a good thing”:
“Now, it’s still to be seen. But what’s a strong signal to me is still some of the smartest people I know in tech are working on solving these problems. They’re building companies that are built on blockchain. The hype is gone. The fervor is gone. But I think that’s a good thing.”
Later in the interview, Ohanian was asked about JP Morgan impending launch of their own cryptocurrency, JPM Coin, which is designed to increase settlement efficiency. Ohanian responded that this was a prime example of the true innovation that has occurred during the crypto bear market.
Ohanian has been bullish on cryptocurrency for some time. In an interview with CNBC last year. ast July, Ohanian, who is also the co-founder of VC firm Initialized Capital, reinforced his belief that Bitcoin (BTC) would trade at $20,000 and Ethereum (ETH) would trade at $1,500 in 2018. Although his prediction proved false, he also noted that “as volatile as it’s been, we see [Bitcoin] continuing to go up over the long term,” so it stands to reason he still believes quite strongly in the price potential of cryptocurrency.