Melinek: Trust in the crypto ecosystem needs to be rebuilt 100%

• Retail investors will sit out of the crypto market in 2023
• VC funds aren’t going to stop investing just because of FTX

TechCrunch senior crypto reporter Jacquelyn Melinek talked to CNBC Market Alert about what lies ahead for the crypto market in 2023, after a painful year for digital assets, investors and other stakeholders in the sector.

Will crypto have any kind of future in 2023?

Jacquelyn Melinek:

There’s a high chance retail investors will sit out of the crypto market in 2023, especially those who have been interested in the past but have seen many industry changing events like Terra’s collapse…at the same time, the true believers are those who are building the space, so these people will continue to be here in 2023. 

Who will be the main investors in crypto in 2023?

VC funds aren’t going to stop investing just because of what happened with FTX. We’re seeing big brand businesses like Starbucks getting into the space. Beyond that, we’re going to keep seeing banks getting into the space. 

2022 has been a rough year for anyone that needs capital. What needs to happen for the crypto ecosystem to “get its mojo”?

Trust needs to be rebuilt 100%. Regulators need to step in and create a framework instead of using old-school techniques that we see with traditional markets.