ICO Market Crashes, But Won’t Hamper Industry Growth — Opinion
Barry Silbert, the founder of a crypto investment fund Digital Currency Group, claimed that the decline of the ICO market will not impede the inevitable growth of the crypto industry. Moreover, a new phenomenon is always accompanied by the lack of stability, which indicates its development, he said on CNBC.
Silbert stated that currently there is no demand for ICOs, and the market is dead. Therefore traders, who acquired lots of bitcoins and other cryptocurrencies during the 2017 frenzy, are starting to sell them off. Also, many crypto funds succeeded to raise funds, but now they are getting redemption requests from investors.
In his opinion, the lack of stability can be considered an imminent disease, related to the growth of the market. He advised traders to analyze previous bubbles and crises in the financial sector — now it is happening for the sixth or seventh time. At first, it is hard for investors to see that their capital has shrunk by 80%, but later they get used to it and see this as an excellent opportunity, Silbert added.
He noted that the industry is undergoing more global changes than price fluctuations. Companies, which will serve the needs of onboarding class of institutional investors, are being created, and the new infrastructure will be ready as soon as 2019, the head of Digital Currency Group believes.
Also, Silbert said that most institutional funds come through over-the-counter trading. He concluded that there is no so-called dark market since OTC platforms set their prices based on the on-exchange market indices.
As previously reported, the VanEck investment company is going to control the bitcoin OTC price.