Crypto Companies Need to Adjust but May Come Back Strong

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Crypto insiders have a lot to say about the future price of Bitcoin and altcoins. Usually, they are bullish praising the downtrend and promising new heights after a small bubble breaks. On the other hand, analysts sponsored by traditional monetary and banking system are willing to express bearish opinions. They tend to predict further sell-off, and most likely "are not able to see the bottom".

It's difficult to make your mind listening to the two sides. That's why looking outside of this group may be a good idea. Business Insider asked some of the most prominent FinTech investors about their cryptocurrency predictions. These people are professional forecasters, they need to recognize the trends correctly to have at least a chance to buy some valuable shares on the very competitive FinTech market. They are interested in both blockchain and other financial innovations. So maybe their opinion is more balanced. 

"A bunch of companies that raised capital using the initial-coin-offering structure either have managed their treasury poorly or realized that they haven't found a strong use case for their token — they are in need of more capital and to raise an equity round," said to Business Insider Paul Veradittakit, a partner in Pantera Capital.

Pantera capital has recently invested in Bakkt, Blockfolio, StarkWare, and Synthetic Minds. Veradittakit notices a new trend. When looking for funding blockchain startups are emitting new shares instead of issuing tokens, as they used to do. Crypto related businesses are adjusting to the tightening regulations with more rigorous know-your-customer processes.

"I think we will see major dislocations in the leadership of the United States, a bear market in stocks, a weakening economy, a number of issues with the global economy including a messy Brexit and a sluggish China. All of this will lead to a more cautious stance by investors in the startup economy. And crypto will not be a safe haven for any of this although there will be signs of life in crypto land in 2019." - wrote in a blogpost Fred Wilson, a co-founder of Union Square Ventures that manages over $1 billion. 

The investors see the long-term potential of crypto startups and also point out to the external causes of the poor performance of crypto in 2018. These opinions may suggest that the crypto market fundamentals are still strong.

 

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