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Ross Gerber, the CEO of the investment firm Gerber Kawasaki Wealth and Investment Management, stated that the recent decline in the cryptocurrency market is attributed to fraudulent crypto projects created by scammers.
The downturn in the crypto market did not occur solely due to natural price fluctuations but was a result of the emergence of deceptive tokens, into which investors redirected funds from Bitcoin and other major altcoins.
The head of Gerber Kawasaki noted a pattern during previous bullish rallies of Bitcoin: as BTC increased, the market became flooded with worthless, “inflated shitcoins,” and their creators profited from the hype, securing quick gains. Subsequently, such crypto projects collapsed, the market lost momentum, and prices fell, lamented the executive. Gerber remarked that fraudulent tokens act like parasites, draining capital from Bitcoin that could have supported the long-term growth of the leading cryptocurrency.
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Consequently, the market loses new growth catalysts, triggering a cycle of selling and leading to a downturn, the executive explained. Gerber asserts that this model plays out in every Bitcoin cycle, resulting in catastrophic losses for retail investors. Currently, the influx of dubious projects has also poisoned the market, making it more volatile and unpredictable, according to the head of Gerber Kawasaki.
Despite the bearish trend, Gerber remains firmly convinced of Bitcoin’s potential — the investment firm Gerber Kawasaki continues to hold the cryptocurrency in its portfolio, alongside shares of the largest chip manufacturer, Nvidia. The investor believes that eventually, the crypto market will stabilize, and Bitcoin will recover.
Previously, Gerber expressed that he does not recognize any other cryptocurrencies besides Bitcoin. He has criticized meme coins that are promoted by celebrities and cryptocurrency influencers.
