Speaking with CNBC on February 7, cryptocurrency lender Nexo founder, Antoni Trenchev, discussed the correlation between the crypto and the traditional financial markets with more institutions in the sector. Trenchev is skeptical about the Federal Reserve (Fed) and the planned rate increases, as well as the manner in which they would be implemented. He believes, on the other hand, that “cheap money” will continue to stay around and will ultimately benefit cryptocurrency assets in the long term.
Cheap money is here to stay
It’s worth noting that Trenchev reaffirmed that cheap money is here to stay, even while considering the notion of whether the Federal Reserve would continue to tighten policy which could signal the end of cheap money. He said: Notably, the markets were caught aback last month by Fed minutes as the Nasdaq suffered its worst loss in 11 months. The Federal Reserve had first indicated that tighter monetary policy is coming back in December, and in early January, it was announced it is coming faster and more broadly.
The potential of the metaverse “is enormous”
Elsewhere, the metaverse and the range of possibilities it offers were discussed when analyzing the future of cryptocurrencies. According to Trenchev, one of the reasons why Meta (NASDAQ: FB) is entering this space is because they filled out their client base board on their existing platforms, notably, their stock crashed by 22% as $200 billion outflowed on February 3. He described the metaverse as “incredibly exciting” as it provides a “whole new economy on top of the existing one.” Additionally, the Nexo founder stated that non-fungible tokens (NFTs) will be the deeds of houses, ownership, and status symbols giving them just as much importance in the metaverse as in the real world. Overall, the metaverse trend appears to be gaining momentum as mobile applications using ‘metaverse’ in their description surged fivefold in the last three months, according to the recent Burga.com report. Watch the full interview:
