While many on the street believe less volatility and increase volume would define maturity of markets, there is another set of people that say increased action from direct investment and corporate action defines the maturity and price just replicates that. Although a lot has been written and spoken of maturing price lets us look at the fundamental side of the story.
Non-Price actions that show markets are maturing
While the world is obsessed with prices of cryptocurrencies, the actual story is being created at the heart of the industry, when fundamentals which include the micro and macro factors of the industry show a paradigm shift. Over past year the price of cryptocurrency has wobbled hitting new lows. But if we look beyond the price a lot of factors do show the cryptocurrencies and blockchain slowly seeping into the routine lives of the people.
Firstly, all major projects have seen development. While Ethereum has been raising its level of security and scalability, XRP has caught hold of nearly all major every financial institution to partner for its products. Tron, EOS, and Vechain all have moved to their Mainnet again signifying a lot of projects are moving to another level with their roadmaps showing signs of maturity.
Not just the development, a lot of cryptocurrencies are increasing use cases. A lot of currencies have reached the POS levels where a customer can swipe his crypto card to buy things. The regulations which form another component to gauge maturity, are slowly finding direction. Although the finish line is still a long way, the progress is there. Countries like Thailand, Japan, Korea, France Switzerland are al being working on regulations that make cryptocurrency climate conducive to growth. Not just a lot of money from institutional investors such as venture capitalists and hedge funds are already moving to cryptos. Not just financial, a lot of companies like ICE and CME are entering into businesses which support cryptocurrencies. All major fundamental indicators which show progress and maturity are positive clearly indicating the crypto industry is not just growing but also maturing.
Key industry players feel the same
These voices are not of the analyst, but of people who are directly invested or run various businesses where blockchain or cryptocurrency forms the heart of the business. With the recent changes being observed a lot of people running businesses see a difference in the way, things are perceived now clearly showing growth in acceptability of this latest piece of technology.
Max Shapiro, a venture associate at BitMEX was quoted saying by Forbes
“We created the (investment) arm in early 2018 with two goals: 1) Grow the ecosystem focusing on specific themes that are strategic to BitMEX. 2) Understanding all of the opportunities and innovation taking place in this rapidly growing ecosystem”
According to him, BitMex has reached a level of stabilization and now the fund is focusing on adding strategic offerings to the exchange,
“All of our themes are related to the traditional financial system, typically focused on encouraging institutional participation in the ecosystem. One of the big themes right now everyone is looking into is crypto custody. How can you successfully have custody of funds with the same level of vigor as the traditional financial system? We also will look at investments that are not directly related to cryptocurrency, but are complimentary, such as cyber security and anti-money laundering solutions.”
A similar thought was echoed by Kavita Gupta, founder of ConsenSys ventures who also indicated that Venture funding in cryptocurrency and blockchain is on the rise,
We are not a liquidity player, we are a strategic player. We are not just capital, we work closely with companies to help them accelerate their projects. With thirty-three offices around the world, we help companies obtain international exposure. We’ve invested in about ten companies so far. Previously, we were 100% Ethereum focused, however, we have since become 90% Ethereum focused, with the other 10% allocated to blockchain agnostic technology around infrastructure, network security, scalability and so on. Application levels are still 100% Ethereum focused.
Ryan Taylor, CEO of Dash Core Group also shared the same views saving as the markets are maturing the new project are becoming more and more risk-averse.
“The current proposals that pass involve lower risk projects. This means funding integrations or marketing costs around the integration of Dash in existing companies. Funding also happens for sponsorships, conferences, radio shows. A few external examples include Alt-36, a cannabis payment gateway in Arizona and Kuvacash, a new electronic payment gateway in Zimbabwe.”
The Fundamental signs for cryptos and blockchain are good for the future of the industry. As soon as the FUD around short-term stories will end, these long-term changes will slowly start reflecting in the prices, taking it much high than one can expect.
Do you believe that crypto industry is maturing despite price volatility? Do let us know your views on the same.
Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.