I worry that this may be the beginning of the end to many long lasting projects and potentially bitcoin itself...
I don't know if you are referring to projects in the sense of CEX or various altcoins that sprout like mushrooms after the rain, but Bitcoin does not depend on them, even if they all fail, Bitcoin will survive. What we need is a lot of firm regulation regarding who can start a crypto exchange and in what way, and that the same CEX cannot list various at least suspicious projects.
In other words, people like Kwon or Bankman should be made as difficult or completely impossible to play in the crypto world because, firstly, they do not know what they are doing, and secondly, they do not accept responsibility for their actions. Both of them should be in prison, and all their assets should be seized and sold so that their clients can at least partially settle, and when they get out of prison, they should be banned for life from doing any business related to finance.
I believe in both of them happening to be fair. I do not know what he meant, but I believe that both the small projects for tokens and coins will go down, but I also believe that some exchanges will go down as well, most of them are terrible. Just focus on what you can do with the most known ones and you will be fine.
I doubt anyone would be hurt if they buy bitcoin and hold it on binance, both the coin is great and the exchange is great and they will be fine, but that doesn't mean its that much of a problem. Lets accept the fact that it's going to be a difficult thing to find that commonly, only a few coins and few exchanges give that much trust to people and you have to realize that.