Comparing The Internet Crash with Crypto’s Initial Coin Offering Collapse: Circle CEO’s Hot Soundbite
During his most recent appearance on Anthony Pompliano’s “Off the Chain” podcast, Circle CEO Jeremy Allaire spoke about how he saw many similarities between 2017’s sudden ICO boom and the rise/fall of the early internet market.
More On The Matter
In Allaire’s opinion, his experience with the 90’s internet market has mirrored what is currently being witnessed by the digital currency domain. For example, he pointed to the fact that the altcoin market was now starting to witness landmark catalytic moments that are comparable to those seen by the internet industry during the mid-to-late 90’s — such as the advent of dial-up internet and release of the Windows 95 OS.
On the subject, he further added:
“That was a set of catalyst moments where it was useful, and that got a lot of people excited. But it was still really immature infrastructure. You really couldn’t do that much, but it was inspiring and there were tons of companies getting started. And that, to me, really felt like where we were in crypto in 2016 [and] 2017.”
Other Key Takeaways
In Allaire’s opinion, the initial hype surrounding any promising, transformative technology can often lead backers/enthusiasts to “overinvest” in it.
In regards to the matter, he added that as soon as the global investment community starts to see the price of any commodity rising too quickly, a whole host of companies jump in with a business plan trying to cash in on the boom — however, what usually ends up happening is that that due to the insane bubble that is created, the market at large comes crashing down within a short period of time.
In rounding off this piece, it is worth noting that Allaire is of the view that a lack of basic infrastructure was one of the main reasons behind the crash of the early internet market as well as the post-2017 ICO slump.
“The technology wasn’t at a place where it could scale and deliver a great customer experience,”