CoinList CEO Believes That Cyclical Pattern of Crypto Industry Is Here to Stay


CoinList CEO Believes That Cyclical Pattern of Crypto Industry Is Here to Stay

On a segment called “Bloomberg Markets: What’d You Miss?” Andy Bromberg joined up with Joe Weisenthal, Caroline Hyde, and Romaine Bostick to discussed how crypto has been performing. Bromberg, who is the founder and CEO of CoinList, believes that the industry is in for a cyclical performance for quite a while.

The opening discussion had to do with the impact of the industry on Bromberg’s platform. He brings attention to the way that ICOs seemed to be “soaring through the sky” with their progress, while this year has not been very positive for them. Consumers seem to be more cautious about where they put their funds, even with a “quality project.”

Adding to this detail, Bromberg noted,

“About six billion dollars went into ICOs, which is a staggering number. This year, it’s looking at about 15 billion dollars so far, and we aren’t even all the way through the year. So, I think there’s been an increase in attention, and that’s because there’s different types of tokens emerging, different types of categories that are going to start to make real sorts of games in the space, and its not just the same models as last year.”

One of the interviewers questioned why the industry even needs that many tokens, which Bromberg does not believe is necessary at all. Most of them are “lower quality,” while “high quality” ones are coming in this year. The better projects are adding to their revenue, while lower quality tokens are not succeeding like last year.

To Bromberg, everything in cryptocurrency comes down to a cycle. He points out the “nascent” quality of the market, even commenting on how young Bitcoin itself is. He said,

“It’s going to go through cycles. We have seen massive spikes and crashes in the cryptocurrency markets every single year since the beginning. I remember in the early days of cryptocurrency, Bitcoin spiked to $31 a bitcoin, and then crashed all the way back down into the single digits and people thought it was over.” He added, “It’s going to be cyclical for a long time… People understand the market better, and things even out.”

CoinList, from the start, had the assumption that the tokens should be treated as “offerings of security,” even though the regulatory measures were not suggested until years later. Bromberg and his team believed that it was the “safest path forward,” even if the token eventually became liquid. This decision has made it easier for them to remain compliant and in that “high quality” category with the few coins on their platform.

The conversation moved to understanding what exactly is a good quality project, and how CoinList selects the tokens they work with. Bromberg commented,

“For us, it starts with looking at it much like you would a venture capital deal. They examine the team, the market, the deal terms and the deal itself.”

From there, they want to see a firm and “thoughtful” legal structure. They also want to ensure that there are economic incentives that are worthwhile, based on the whitepaper.

Realistically, the newness of the industry makes it nearly impossible to figure out what is going to thrive, but the company wants contributors that have the consideration to examine all parts of an Initial Coin Offering. Bromberg concludes, saying,

“It is really a new field of study, something that no one has a Ph.D. in yet, and that time will come. But, for now, we’re just working on hiring great generalists and experts that can figure this out.”

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