Kathleen Brightman: The crisis reminded, that the laws of economics work in the crypto industry – Bits Media

The co-founder of the decentralized first-level blockchain Tezos believes, that the wave of defaults of crypto companies proved the unviability of projects, designed only for profit growth.

Kathleen Brightman (Kathleen Breitman) stated in an interview, that bankruptcy is problematic crypto lender Celsius Network was predictable, since such business models are extremely unsustainable in the long term.

"All, who has been in the industry for quite a long time, I wasn't surprised at all. In economics, contrary to popular belief, there are laws, that go beyond the blockchain", - says Breitman.

According to Tezos co-founder, In general, recent events have been more or less predictable. Three Arrows Capital's insolvency allows us to speak, that the cryptocurrency hedge fund crisis was “uniquely bad”. Brightman is confident, that cryptocurrency companies, facing a financial crisis due to the collapse of Terra or a wave of defaults, were actually not viable:

"You can't create a sustainable protocol or business, based on the theory that, that the numbers will always grow".

Cryptocurrency lender Celsius unexpectedly filed for immediate bankruptcy in the Southern District of New York after paying off its debts. A New York federal court froze the remaining assets of cryptocurrency hedge fund Three Arrows Capital - shortly after, how the company filed an emergency bankruptcy petition. A wave of crises hit crypto companies after, how Terra faced default in a falling market. Company, related directly or indirectly to the project, faced losses, which put their existence at risk.