CEO of Altcoin.io Touches on the Institutional Investment Onboarding Process to Boost Crypto Adoption
The current period of sustained low prices in the market has opened up a debate on whether the use of blockchain and associated cryptocurrencies will ever take a global scale. The question of mass adoption has lingered over the industry for the better part of 2018 leading to any conclusions on the event that mass adoption occurs. One common view, however, is that the industry requires institutional investors to reach its potential adoption across the globe.
In an interview with one of the crypto releases, the CEO and President of Altcoin.io, Ken Kavanaugh, stated the importance of having institutional investors if the industry aims for mass adoption. The CEO offered two key points any new asset industry needs if it is to be adopted on a global scale, profit potential and liquidity. The effect of profit potential tends to push institutional investors into the industry, a current failure in the cryptocurrency industry.
The lack of profits currently in the cryptocurrency industry does not take away the massive potential the industry holds according to Kavanaugh. Liquidity increment requires profit potential or institutional investor simply won’t flock to the new class asset. Ken further stated that the cryptocurrency industry shows promise hence the entry of institutional investors to space will be swift. He added,
“This initiates the virtuous cycle of ‘liquidity begets liquidity’. We’re already in the process of mass adoption but waiting for that next inflection point. New institutional investors are the catalysts for this inflection point.”
Who Are The Institutional investors?
The cryptocurrency industry is yet to reach its next infliction point as stated by Kavanaugh, who believes the industry will move from the current small hedge firms and family offices. These make up most of the real institutional investment in the crypto industry. The next institutional investor infliction point is set to include the larger players in the financial industry such as pension firms, asset management firms, prime brokers and banks as the main players in the industry.
With the cryptocurrency industry aiming a worldwide audience and user platform, the presence of institutional investors will greatly improve the overall adoption process. It may well be the key component in ensuring a global mass usage of cryptocurrency through liquidity injections.