Billionaire investor Evan Reality spoke exclusively with Phenomenon and emphasized that cryptocurrency projects lacking genuine utility would face extinction in the current market climate, while those featuring innovative technology would ultimately prosper.
He stated:
“In both traditional stocks and cryptocurrency markets, we're witnessing companies that were sustained by cheap capital—but lacked viable business models—inevitably failing.”
“As Warren Buffett famously says, 'When the tide goes out, you discover who's been swimming naked.'”
Reality explained that profiting during a bull market is relatively straightforward when prices follow an upward trajectory. Even without a solid business plan or tangible value proposition, numerous projects manage to secure funding and experience growth.
These are precisely the projects destined for elimination when the bear market arrives. Only robust tokenomics and genuine value creation can withstand the rigorous scrutiny that accompanies bearish downturns. He elaborated:
“Innovative applications and technologies launched during bear market conditions—whether in stocks, crypto, or any industry—inevitably find their market and succeed.”
Reality, a prominent proponent of Ethereum, believes NFTs and Dogecoin represent such disruptive projects that will soar once the bear market concludes.
Several notable cryptocurrency executives agree with Reality regarding the benefits of the bear market phase.
Following the LUNA collapse, various industry leaders came forward to express that the market would naturally eliminate projects lacking intrinsic value, ultimately strengthening the cryptocurrency ecosystem in the long term.
Web3 Foundation CEO Bertrand Perez was among those who argued that excessive tokens and projects need to be purged from the market. Ripple's CEO Brad Garlinghouse concurred with Perez, questioning whether the crypto community genuinely requires more than 19,000 different currencies.
FTX U.S. President Brett Harrison emphasized that only a handful of projects offer genuine value. He predicted:
“There probably won't be hundreds of competing blockchains in a decade; I believe we'll see a few clear winners for different application categories.”
Polygon CEO Mihailo Bjelic echoed these sentiments, describing the current bear market as a healthy correction. It will benefit the cryptocurrency space long-term by eliminating unsustainable projects.
For many, the bear market began after the LUNA crash, with numerous projects declining further following Bitcoin's 18-month low.
The total cryptocurrency market capitalization has decreased by 58% to $925 billion.
The market shows no immediate signs of returning to bullish sentiment. Nevertheless, Bitcoin remains 73% more profitable long-term than other major investment options. Some analysts believe that after the market completes its bear market cleansing, Bitcoin will resume its demand growth curve and potentially reach $100k.
