Founder and managing partner of venture capital firm Morgan Creek Anthony Pompliano said that soon a cryptocurrency hedge funds will be forced to announce the closure, and ICO projects ahead of penalties and bankruptcy. Pompliano convinced that this is a natural cleansing process industry from “tourists”.
Many crypto funds and ICO projects are about to race to shut down or declare bankruptcy.
They don’t even realize what is happening. I’m elaborating on this and more in tomorrow morning”s installment of Off The Chain email.
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— Pomp
(@APompliano) November 18, 2018
He stressed that the majority of cryptocurrency funds will be closed for the reason that investment managers will not be able to write a regular 20% Commission on income at the end of 2018, as it was not able to increase capital investment in the current period.
At the same time, they will have to double or even quadruple the cost of the assets under management in the next period to get the same bonuses. Pompliano sure that such results until 2020 most unlikely to achieve.
He added that many closed funds and will wait a year or more to come up with a new product to the market of cryptocurrency investment. A minority will try to go through a long bear market.
Also, Pompliano said that the decision of the Commission on securities and exchange Commission (SEC) in relation to the ICO startups Paragon and Airfox suggests that the majority issued in the framework of krautsalat token will be recognized as unregistered securities, the projects will be fined, and investors will be able to claim the invested funds back. Given the scale of the collapse of the cryptocurrency market in 2018, it is unlikely at least one of the ICO start-UPS, says the founder of Morgan Creek will be able to return the investment in dollar terms. So, they many of them are declared bankrupt.
“The current bear market will be worse for the cryptocurrency funds and ICO projects. The situation deteriorates much stronger than before will come a white stripe. And that’s fine. Bear market the game of tourists, leaving only the true entrepreneurs are able to create sustainable value,” he said.
Pompliano also had an interesting historical parallel:
“People were afraid of electricity, the first train, the first airplane, the Internet, and hedge funds. Now they are afraid of bitcoin. They are afraid of what they don’t understand. Do not get on the wrong side”.
History lesson:
— People feared electricity
— People feared first train
— People feared first plane
— People feared the internet
— People feared hedge funds
— People feared BitcoinPeople fear what they don’t understand. Don’t get caught on the wrong side of history.
— Pomp
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