Rapid decline, of course cryptocurrencies that we are seeing these days, can pull a whole industry, including mining (and more specifically the manufacturers of mining equipment) and cryptophytae funds, the collapse of which will cause huge losses to investors and exacerbate the panic in the market.
As founder and partner of Morgan Creek Digital Assets Anthony Pompliano, today’s cryptocurrency funds will soon start to close, and their management will return the money to investors. Expat draws attention to the fact that from December 2017 the cost of the most popular cryptocurrency decreased by 50-80%, so these companies go temporarily out of business for several months or even a year until the situation stabiliziruemost.
According to Pompliano, it will not happen before 2020. Managers still have not closed their funds due to lack of experience, at the moment they do not realize how bad they’re doing.
A similar situation awaits the ICO startups that will be required to return money to investors if you receive a warning from the American Commission on securities and exchange Commission (SEC), which began to strictly control the industry projects for the initial placement of tokens. Almost all companies have attracted funding in the cryptocurrency, however, means they will be obliged to repay in dollars. Therefore, the reduction of the value of digital assets can put the team in a difficult situation, your only recourse will be bankruptcy.
This situation together with the closure of cryptocurrency funds will cause another wave of panic, I’m sure, Pompliano. However, for such volatile markets it is quite normal, explained the expert. The only way the industry can get rid of “random people” and start to truly develop.