Barry Silbert of Digital Currency Group and Grayscale Predicts Most Crypto Coins Will Go to Zero
The cryptocurrency bear market has been relentless lately, and the failures of the industry have left it open to substantial criticism and pessimism. CEO and founder of Digital Currency Group, Barry Silbert, is among the many that believe that there will be no value found in many digital assets that are presently in the market.
According to CNBC, the interview took place over the phone when Silbert said,
“I’m not a believer in the vast majority of digital tokens and I believe most will go to zero. Almost every [initial coin offering] ICO was just an attempt to raise money, but there was no use for the underlying token.”
ICOs were at the height of their popularity towards the end of 2017 and the beginning of 2018, marking one of the biggest rises and falls of the market thus far. Many regulators at both state and federal levels started buckling down on their regulations, specifically for projects that were ignoring securities laws.
Information collected from CoinSchedules reveals that the current valuation for ICOs is back to where it stayed in January 2017, way before the rise and fall of Bitcoin. Last month, ICOs were responsible for raising $291.6 million. Though millions of dollars are nothing to scoff at, it is significantly smaller than the $5.8 billion that ICOs raised in March last year.
Even though Barry Silbert is clearly anti-ICO, his stance on Bitcoin is much more positive. Reports suggest that he was an early investor, despite having a “really ugly technical chart.” However, he added that Bitcoin has “won the race to be digital gold.”
Founder of Galaxy Digital, Mike Novogratz, commented today on the uniqueness of Bitcoin amongst all of the other altcoins. Speaking on the potential to be used as a store of value, Novogratz said of Bitcoin,
“There’s 118 elements on the periodic table, and only one gold […] Bitcoin is going to be digital gold, a place where you have sovereign money, it’s not U.S. money, it’s not Chinese money, it’s sovereign. Sovereignty costs a lot, it should.”
The Digital Currency Group is one of the multiple companies that are responsible for developing the Blockchain Association. This is allegedly the first lobbying group in Washington, D.C. to represent blockchain technology and the industry. Coinbase, a crypto exchange and wallet service, and Protocol Labs, a tech startup, are both founding members of the Blockchain Association team.