Blockchain's Peter Smith sees innovation but thinks some will be unprepared for a ‘Crypto Winter’
"The market filled your sail with wind and now you're doing a good job of sailing. But are you ready to survive the next time the wind drops?"
Blockchain, one of the longest operating firms in the crypto space, has been successful at taking the long road. Now the U.K.-based company is building out its stockpile of cash reserves to prepare for a possible ‘Crypto Winter’ on the horizon -- that is, a prolonged downturn in the market.
"I think when I look out over the space right now, there's going to be a lot of folks who are unprepared for that," CEO and co-founder Peter Smith told The Scoop host Frank Chaparro.
Now, Smith says, the company has prepared for the even longer road ahead. Blockchain recently obtained a $5.2 billion valuation following several rounds of funding in 2021, including a $300 million round of funding most recently in March.
Smith believes that many of the oldest companies in crypto right now are building out their capital reserves to tackle the risks of a possible downturn or regulatory crackdown.
“One of our biggest focuses here is making sure that we're here in 2030," Smith said. "And that means a lot of prudent risk management, both on the regulatory side and on the finance side, neither of which are sexy or fun.”
Chaparro and Smith also discussed some of the on-chain innovations that Smith is looking out for in the immediate future. One such example that Smiths believes could invigorate public interest in the space is the launch of on-chain consumer apps, which Smith predicts could begin as soon as later this year.
“It's going to lead to an explosion of innovation, probably something like when Apple created the App Store“. He likened the advent of such on-chain crypto apps to the rise of Web apps most are familiar with on their phones or tablets. “You’re on the phone 24hrs a day, the same thing will happen in crypto.” Smith noted that he hopes Blockchain could one day become one of the builders of such apps.
Smith also highlighted the public interest in whether Blockchain may follow other industry companies in going public. He affirmed the company's appetite to one day tap public markets but cautioned that the team is waiting for the right time to take that step. Smith said that the company is currently focused on M&A, with four deals in progress as Blockchain looks to step up its market share.
© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.Source