
Only 2% of firms raising money on the back of AI hype will survive, Bitpanda's chief executive said.
Amidst the excitement surrounding AI and the influx of investment into the sector, Eric Demuth said that there is 'a lot of good AI stuff in the making, but that the current cycle resembles previous goldrushes.
He said in an interview with Decrypt, which took place during the Sifted summit 2023 in London.
As with previous hype cycles, the end of the boom will bring a clearout of the sector, he said.
The introduction of the EU's landmark crypto bill and clarification in other jurisdictions has also had a negative impact on big banks, he said.
Bitpanda announced earlier this year that it has teamed up with Coinbase to provide institutions with a back-end solution that helps them offer crypto services to their customers.