Dan Dolev, senior analyst at Mizuho Americas, believes that crypto is now “dead” following the collapse of the FTX exchange.
The stark warning comes after the total crypto market briefly dropped to $736 billion, the lowest figure since early 2021. Roughly a year ago, the entire crypto market cap was at a record $3 trillion.
Back in May, Dolev stated that cryptocurrencies were not a productive asset during an interview with CNBC.
COIN is a “waste of time”
Dolev is bearish on the stock of Coinbase, the leading U.S. cryptocurrency exchange.
As reported by U.Today, COIN recently plunged to a new record low of just $40.61, collapsing more than 90% from its record high.
The analyst predicts that investors are going to be “very, very scared.”
Centralized cryptocurrency exchanges are reeling from the collapse of the FTX exchange that sent shockwaves across the investment community. Coinbase has attempted to distance itself from the disaster, but its shares were still hit hard by the crisis.
Coinbase’s stock was recently downgraded to neutral by Bank of America.
In a research note published earlier this week, Dolev opined that the collapse of FTX would actually do very little to help its rivals, adding that the black swan event marked “a deteriorating industry.”