During an exclusive interview with Cryptovest, Toby, a developer from BTC.com, gave his opinion on Bitcoin’s market manipulation, Initial Coin Offerings (ICOs) and more.
BTC.com Talks About Crypto Market
Some weeks ago, a Texas University professor presented a study in which he showed that Bitcoin price has been manipulated by Tether (USDT) during bear markets. At the same time, The U.S. Securities and Exchange Commission (CFTC), provided evidence on market manipulation as well.
About it, he commented that the market has its own cycles and this was just one of them. ‘I think it justs a general market cycle… it’s easy to see a repetitive pattern.’
Additionally, he said that Bitcoin is an asset that is not necessarily subject to manipulation, but instead it has constants ‘boom and bust cycles.’ And this is something that is shared by eToro’s Senior Market Analyst, Mati Greenspan. He expressed similar opinions.
What About Initial Coin Offerings?
During this year, Initial Coin Offerings have been expanding all over the world. Because of this reason and the billions that the industry moves, it has been one of the main topics on the media and the crypto industry.
Regulatory agencies all over the world have also been warning about the risks related to the cryptocurrency and ICO market. Moreover, they have been taking different measures in order to control the market.
Because of different scams that took place in the ecosystem, the community is divided on whether to defend or not Initial Coin Offerings. On the matter he said to ICOs not to ‘scam people’ and have products before releasing the ICO.
‘Many ICOs I see are just a website and a countdown, and a Bitcoin and Ethereum address where I can send my money,’ he said.
He is asking ICO leaders not to lie about the promises they make and to present tested products before launching the token offering. And the truth is that the ICO market is full of investors placing their bets on a highly speculative market with projects that are totally worth nothing.
During the interview, Toby received a question related to whether ICO investors are concerned about making fast returns or supporting the technology behind the projects. About it he stated that there are some individuals that want to have a fast return on investments.
“I think it’s more attractive to people to buy something that’s worth a couple cents than buying this huge thing that’s Bitcoin, that’s worth a thousand.”
An important point he made here was that it is possible to educate people and explain to them that it is possible to buy just a fraction of a bitcoin. In addition to it, they can also know that it is possible to avoid investing in highly speculative and risky Initial Coin Offerings.
He recommends people in the market to invest in Bitcoin rather than in an token that has been launched just ‘yesterday.’
Finally, Toby is advising investors to place their funds in Bitcoin – a conservative asset – rather than in ICOs, which are speculative investments. At the moment Bitcoin is being traded around $6,600 dollars and has an important liquidity compared with other smaller tokens.