The co-founder of failed cryptocurrency fund 3AC shared his predictions for the upcoming year, sharing his views on the most sensitive topics right now and the future of popular products and companies in the industry.
First and foremost, SBF, the CEO of failed cryptocurrency exchange FTX will plead guilty and get approximately 100 people indicted, but he will not serve any days in jail in 2023, believes Davis.
2023 Predictions— Kyle Davies (@KyleLDavies) December 26, 2022
1) SBF pleads guilty and ~100 ppl are indicted. He serves no days in jail this year.
2) Genesis and Grayscale face class actions. The SEC brings a criminal case against DCG for improprieties between affiliated subsidiaries.
As for Genesis and Grayscale, both companies will face class actions, according to the 3AC co-founder, and the SEC will bring a criminal case against Barry Silbert's Digital Currency Group for improprieties between affiliated subsidiaries.
Two of the most discussed topics at the end of November and the beginning of December were Binance and Tether. Both of them were accused of insolvency and the potential inability to cover investors' needs. However, Davis believes that both of them will be fine: Binance's market share will rise, and Tether's peg to the dollar will remain intact.
The co-founder of the failed funds believes that the rally on the cryptocurrency market will start much lower than current prices, with Dubai and Singapore becoming major cryptocurrency hubs.
Despite the grim picture most analysts are painting today, Bitcoin and Ethereum will still produce blocks and function as they should, and crypto will not be "dead" despite the decreased activity of the industry over the last few months.
Generally, Davies shares a surprisingly positive outlook for the industry in the upcoming year. Considering the overall state of the industry today and the performance of the market historically, we might in fact see a recovery in 2023, especially after new regulations kick in.