The cryptocurrency community has always rallied behind Bitcoin as they placed hopers in it to breach the mainstream surface. This feeling was also renewed when several applications that used blockchain tech were integrated into the mainstream ecosystem, sparking a widespread revolution. Out of the several requirements that proponents say have to be met by Bitcoin to become huge, no other factor comes close to the concept of institutional investment.
Recent reports showed that this might have taken a hit because almost 70 cryptocurrency-based hedge funds were found to have closed down just this year alone. According to Crypto Fund Research, a resource for data and market intelligence, the number of cryptocurrency funds launched in 2018 was double of what was launched in 2019.
The funds that closed mostly revolved around pensions, wealthy individuals as well as several family offices. Other cryptocurrency market analysts also echoed the result by claiming that the current market is retail-driven, and the possibility for a change did not exist in the foreseeable future.
The total number of cryptocurrency projects launched last year amounted to 284, just seven shy of the record of 291 set in 2017. Cut to 2019, and only 128 projects took flight in 2018. The closures were not just isolated to one country but regions worldwide. Twenty-eight countries were based in the US, while twenty-three companies were from Europe. Asia was slowly rising up in the crypto industry, as evidenced by the 14 funds shutting down there.
Even then, cryptocurrency evangelists like Michael Novogratz only had good things to say about the digital assets industry. He stated that there were a lot of things going on in the background, which would lead to a market boom. In his words:
“It’s not a stampede by any stretch, but people are all doing their work. The next wave will come from the wealth advisers, maybe with endowments and small foundations participating.”
Other supporters like Spencer Bogart also opined that the schedule of success depended on the community, and that slow and study wins the race. Spencer Bogart, the general partner at San Francisco-based Blockchain Capital LLC, had stated that despite the setbacks, Bitcoin had still surpassed expectations over the past ten years.
Disclaimer: The presented information is subjected to market conditions and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.