Between Wednesday May 11 and Thursday May 12, the total market cap took a 10% nose dive, according to CoinMarketCap.
The decrease has revealed the divide between retail and institutional investors. Hoskinson says that retail investors are now using crypto to dodge “a global system that’s unfair”.
“Institutions have been dumping their crypto… most are looking at it as a high-risk, high-return asset. This was always the danger of inviting the Wall Street types in”, he said.
Due to the rise in inflation and financial strategies concerning such changes, Hoskinson believes bankers and VCs are “playing musical chairs” with the global economy, claiming it “will collapse” as it is unable to sustain itself.
When considering crypto to be part of an economic solution, Hoskinson continued to stress the idea that it's the manipulation of cryptocurrencies that drives down prices in the global market, not the currency itself.
“The entire point of cryptocurrencies is to restore some trust, credibility, and stability into the world money system”, he said.
Meanwhile, actor Adrian Grenier voiced views not dissimilar to that of Hoskinson's, claiming that cryptocurrencies can “fix” many of the problems that traditional financial systems face.