Anthony Pompliano: Crypto Market Drop Will Let The Industry To Get Rid Of Tourists
The founder of venture company Morgan Creek Anthony Pompliano posted several tweets about the current bear trend in the crypto currency market.
According to Morgan Creek СЕО, the drop of cryptomarket will make most of hedge funds shut down and ICO projects will get fined and go into bankruptcy. He believes that this is just natural process of getting rid of “tourists” – the ones who are not professional traders.
In his opinion, most of the ICOs which are live now will be recognized as bankrupts because they won’t manage to give investments back in fiat currencies. The bear trend will have bad influence on cryptocurrency funds and ICOs. He says that the situation will become much worse before the run of good luck and it is fine. The bear market pushes the tourists away, only true entrepreneurs will withstand it.
Pompliano notes that the shutdown of most of cryptofunds will be connected with absence of opportunity to charge high commission from income for the current year because of bear trend. He highlights that investment managers won’t be able to get 20% of funds in the form of commissions. As the Morgan Creek’s founder believes, many of funds will decide to shut down or launch new products. Few will manage to withstand cryptocurrency market’s drop.
Anthony Pompliano draws a historical parallel between bitcoin and other humanity’s discoveries saying that people were afraid of electricity, of the first planes and trains, and now they are afraid of hedge funds and bitcoin. They are afraid of something that they do not understand, do not side with them.
Note that today, on November, 20th, the rates of leading crypto currencies will allegedly drop: biotin lost more than 15% for 24 hours and Bitcoin Cash lost 44%.