Wood believes that investors should be mindful of backings supporting their crypto holdings in order to avoid getting caught up in a crash.
Ethereum co-founder Gavin Wood has urged crypto investors to “pay more attention” to the underlying support structure of their investments amid the recent crypto crash. Wood’s cautionary note comes after the recent UST and Luna plunge that wiped off more than $800 billion. In a media session with Reuters at the ongoing World Economic Forum in Davos, Switzerland, the digital currency creator and computer scientist said:
“I would hope that people pay more attention to what is belying the currency name when they get involved in a community, ecosystem, economy.”
Wood Touches on Recent Crypto Crash Amid High Crypto Visibility at WEF
The comments Wood made concerning the crypto crash were at this year’s World Economic Forum. The event notably saw a high representation of crypto-minded businesses. The popular Promenade strip leading to the Swiss Alpine resort is adorned with crypto businesses displaying their wares to passers-by. RollApp’s co-founder Fernando Verboonen said off all businesses on the stop, crypto firms constitute a 60% majority.
The interest in crypto presence this year also comes as digital assets have been plunging over the past several weeks. In addition to Luna, which is essentially now of zero value, Bitcoin (BTC) and the popular altcoins have all been trading lower.
Wood is attending the World Economic Forum for the first time to provide insight into a new business partnership. This partnership sees one of his blockchain projects Polkadot (DOT) enter a collaborative scheme with American billionaire Frank McCourt’s Project Liberty. According to Wood, this partnership looks to decentralize control of the web and grant users more control over their data. Speaking on the Web3-inspired initiative, Wood stated:
“The technology cannot prevent people from making mistakes but can help those who want to understand better the facts of the world, what they’re buying.”
“The internet has no real concept of legality, because legality is something that is determined by sovereign nations,” added he.
Wood and Web3
Wood is no stranger to Web3, having coined the term himself. The Ethereum co-creator also founded the Web3 Foundation, an organization that facilitates reformation away from corporations like Google parent Alphabet (NASDAQ: GOOGL). By doing so, individual users have more control over their web footprint and can decide what to do with it. Furthermore, this increased personal control also negates endemic threats such as privacy violations, phishing, and spamming to a great degree.
The technology behind the Web3 initiative relies on the blockchain, which also powers crypto, decentralized finance (DeFi) applications, and non-fungible tokens (NFTs). These networks remain largely unregulated and include popular protocols like Ethereum and Solana.
Solana has been recently integrated with the privacy browser Brave to improve Web3 access. This development follows a similar move made by Oracle in March that saw integration with Solana and other blockchain ecosystems.