The crypto winter washout has exposed some token projects as self-serving and shoddy, in a similar way that the tech bust did in 2001-02.
to the sector. The “crypto winter” reinforces sceptics’ views on the asset class and has delayed institutional adoption. However, if we look at historic cycles of other growth asset class development is there reason for optimism?The dot-com technology sector boom and bust is an oft-cited analogy. The Nasdaq index plummeted 81 per cent from its March 2000 all-time high to September 2002 lows.
Stories of failed companies highlight that the overcapitalisation of bad and terrible business plans can end poorly for investors. Later Google, Facebook and Tesla proved business plans with sufficient capital backing that focused on market dominance first and profitability later could thriveWhen people look at the digital asset space their focus is invariably at the pointy/crappy end of town, as
You should view these larger coins as akin to equities: they have significant market capitalisation and have mostly already proved their use case. Therefore, you are getting exposure to adoption, which is lower-risk than in the smaller coins but still offers an exponential return curve.The second way to engage is to pick managers who focus on exploiting the many opportunities that arise from a developing market infrastructure.
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