Experts are cautioning that crypto treasury firms could precipitate a market crash reminiscent of the dotcom bubble, with potential losses reaching up to 80%. Ray Youssef, founder of NoOnes, likens the current enthusiasm for crypto, DeFi, and Web3 to the internet boom of the late 1990s, which saw many overhyped companies collapse. He forecasts that numerous crypto treasury firms may fail, leading to a sell-off of their holdings and a significant market correction.
Youssef suggests that companies with disciplined strategies, particularly those holding Bitcoin and Ethereum and managing debt responsibly, may withstand downturns. In contrast, firms heavily invested in volatile altcoins or speculative strategies are at risk of being wiped out during bear markets.
Crypto Treasury Firms Face Market Crash Risks Amid Bubble Warnings
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