EXMO Co-founder Ivan Petukhovsky Outlines His Possibilities in Cryptocurrency Market for 2019

EXMO cryptocurrency exchange co-founder and CEO wrote on Medium the five things cryptocurrency investors should be expecting in 2019.

The past two years in the cryptocurrency market has been impressive, to say the least, as both the adoption rates and the price soared to previously unknown heights. The last quarter of 2017 nonetheless took the world in surprise as Bitcoin’s price crossed $20,000-mark leading to a boom in the cryptocurrency market. Money was pouring out to any ICO started and so were investors who wished their project was the next Bitcoin or Ripple.

The Cryptocurrency Industry Cleansing

The year of 2018, however, was a shock to most investors as the prices dropped drastically pushing most of the ICO projects out of existence. Ivan terms the current state of the market as a “cleansing phase” that will actively continue in 2019. Furthermore, the quality of the market will improve hence the increase in liquidity is expected.

The industry has seen a couple of regulations being set including ICO issuance and trading of digital assets. This improves the confidence of the investors and offers them an efficient platform to raise capital by issuing digital assets. Furthermore, regulation on the industry proves a strong statement for future development of blockchains and cryptocurrencies.

Unlike 2017 and 2018, future digital asset projects are expected to improve without the presence of scammers and fakes among them.

Cryptocurrencies And Regulation

As explained above, regulation is taking the driving seat for most governments interested in the technology. Ivan explained that 2019 will bring about more regulation in the space but for the benefit of the industry. Development of dynamic regulations will allow cooperation of traditional financial institutions with the rising blockchain companies.

Governments that were previously set rules and regulations stiffening growth in the industry have eased their stance. They are treating the digital assets as an investment tool hence setting development friendly jurisdiction on the industry.

“It will enable exchanges to work seamlessly with banks, including the use of bank transfers, as well as enter into agreements with legal entities.”

This will allow investment opportunities in digital assets to be easily accessible across traditional markets.

Market Consolidation With Classical Finance Institutions.

The total sum of a clean regulate market in adoption and investment flowing into the cryptocurrency industry, according to Ivan. The CEO sees the trend of traditional finance corporations acquiring cryptocurrency companies becoming stronger as the market is cleansed. Other companies may well fall off or liquidate. He wrote,

“We expect that these trends will lead to consolidation of the market (by mergers and acquisitions), and perhaps even to bankruptcies (the sensational story of the WEX exchange can be taken as a prime example).”

Furthermore, as the profits from ICOs diminish and the crazy market of impulsively investing in tokens, cryptocurrency companies are focusing on offering IPOs. This will allow companies to raise capital through equity and gain the shareholder's trust too.

The reasons above do not exhaust the possibilities the dynamic nature cryptocurrencies will show in 2019. Ivan predicts an increase in liquidity of the crypto market, an increase in adoption rates across the globe, the development of new cryptocurrency compatible tools and a massive inflow of capital investments from traditional institutions. With the bear market expected on the stock market this year, cryptocurrencies may well benefit.

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