It seems that the cryptocurrency bear market has been affecting not only a few Initial Coin Offerings (ICOs) but also several crypto exchanges. According to Travis Kling, a former Wall Street portfolio manager, the market will be moving forward after cleaning the market from weak competitors and companies.
Mr. Kling commented that there are several projects shutting down, exchanges closing, SEC enforcement, layoffs and more. This is the only way for the market to keep growing in the future.
We need more.
More exchanges gone. More projects shuttering. More SEC enforcements. More developer ragequits. More ICO Treasury selling. More layoffs. More fund liquidations. More scammers exposed. More failed cap raises. More “crypto is dead”.
Only then do we move higher :)
— Travis Kling (@Travis_Kling) January 28, 2019
The comments he made come just after the Liqui exchange, a Ukraine-based exchange stopped operating due to illiquidity.
Apparently, crypto exchanges are facing some issues due to an unregulated cryptocurrency space. There are several companies that started Initial Coin Offerings and shortly after gathering millions of dollars they left the market without any product or service for investors.
According to a recent study released by CipherTrade Cryptocurrency Intelligence, most illegal transactions related to digital currencies tend to happen in exchanges without proper KYC and AML restrictions. Exchanges rely on commission-based income models related to the number of trades that individuals make on these platforms.
As trading volumes fell during the whole 2018, exchanges are not so profitable as before. Furthermore, countries that have strict rules on digital assets have also pushed crypto exchanges to shut down their operations, as it happened in India with ZebPay, for example, or in Italy with BitGrail.
As mentioned before, having a prolonged bear market helps space grow even faster in the future. According to Balaji S. Srinivasan, CTO at Coinbase explained that it may be the crypto winter for the price of most digital assets but it feels like the summer for innovation. He mentioned several developments in the market such as decentralized lending, interest, derivatives, prediction markets, and many other things.
It may be the crypto winter for price, but it feels like the the summer for innovation. Decentralized lending, interest, derivatives, prediction markets, Lightning and L2, zk-SNARKS/STARKS, bulletproofs, staking, stablecoins…lot of good things happening across the ecosystem.
— Balaji S. Srinivasan (@balajis) January 29, 2019
Damon Nam, the Coinvest founder, said that the crypto market needs more credible and experienced entrepreneurs, more use-cases, more products that solve real problems and more compliance, among other things.
More credible and experienced entrepreneurs.
More products that solve real problems.
More infrastructure companies.
More industry references and case studies.
More sustainable business models.
More community governed regulation.
— Damon Nam (@vietnam) January 29, 2019
As explained by Jameson Lopp, CTO at CasaHODL, fundamentals behind Bitcoin is very bullish compared to its price. He said that the price is just one of the many aspects of digital currencies. Lopp wrote an article in which he shows that Bitcoin’s fundamentals continued to grow during the whole bear market in 2018.