One of the YouTube channels has recently hosted a discussion on ICO. It’s been an expert analysis from Sergey ICO Drops and Pityok who shared their vision of the foreseeable future of crypto-startups, the blockchain market as a whole, and the tips and tricks on how to work with the Coinlist cryptocurrency platform. Here’s the summary of their discussion.
Could the Bitcoin Price Drop Be a Harbinger of the Crypto Market Crash or Does it Indicate that it’s Time to Buy Some Crypto?
Sergey ICO Drops put forth the proposition that bitcoin volatility, by and large, depends on the media. Now, it's only natural that crypto prices fall as Elon Musk posts something. The issue of mining sustainability he addresses has made a dramatic impact on crypto price ranges. And then it was the Chinese government that made the matter worse, meaning that all the finch companies all over the country were no longer allowed to make transactions that involve cryptocurrency.
The news like the ones that come from El Salvador where Bitcoin has become legal tender inspires "bulls", though without resuming the uptrend. Currently, it is a sideways drift on the market. Sergey ICO Drops advises monitoring Musk’s Twitter so as not to miss any important news and to make a purchase on time.
Pityok, unlike his colleague, is a bit skeptical about such impulsive crypto changes that are made by Elon Musk statements and other one-time news events. Pityok analyses the crypto market based on the global market vision citing financial tycoons like Ray Dalio, companies like PricewaterhouseCoopers (PwC), and Goldman Sachs.
All in all, both speakers are not quick to draw any conclusions as far as Bitcoin’s future goes. Although, they agree that the bearish trend is not coming any time soon.
"Bitcoin’s biggest risk is being successful", Ray Dalio
Billionaire investor Ray Dalio believes that Bitcoin’s success could potentially kill it.
If the cryptocurrency continues to actively develop driving out fiat money of governments it could potentially result in economic collapses of these countries. Governments don’t wanna lose a monopoly on money printing and product turnover. The decisions to legalize Bitcoin made by underdeveloped countries aforementioned El Salvador will add to its value. In turn, developed countries like China can ban it altogether or significantly limit cryptocurrency turnover.
The recent move by the El Salvador government as far as Bitcoin is concerned is just hype, our experts understand. However, if this trend towards making Bitcoin a legal currency continues to grow then the response from governments could mean a serious threat for Bitcoin in the first place.
About Crypto-Startups
The guests of the discussion spoke about the future of startups and the dominance of Bitcoin, Ether, Lightcoin. It all boils down to the fact that most of the new ICO projects have huge chances to successfully scale up. Pityok believes that Ether has already found its niche and it will no longer be actively promoted.
On the other hand, there are many experienced developers in the Ethereum team, and projects like Solana, Alameda could outbid Ethereum for those talented people. Vitalik Buterin is more of a techie himself and by and large, the owners of new crypto projects are businessmen. That’s why they are ready to invest from the get-go to get their share and turn a profit on launching an ICO.
New blockchain projects offer investors a significant share and that attracts jobbers of all sorts.
Earnings Drop on Token Sales
Rumour has it that crypto exchanges don’t allow people to earn as much as they did before. The whole number of projects decreased and, for the most part, they are not big either, however, with the same tokenomics as that of the bigger projects. Many investors join these projects and the profit of each of them is not high.
Larger projects get greedy when they see their advantage over smaller startups. The ever-increasing demand for new cryptocurrency speaks to the fact that people with the insights make a mint. They create funds and eagerly invest large amounts of money. Top cryptocurrencies are waiting for these investments. Oftentimes, the amount of fundraising surpasses $30 000 000.
As the demand for cryptocurrency increases, the number of crypto projects — both small and large — declines.
Where to Get Money?
When some people earn money, others lose them — this law of the stock market works for token sale as well, as Pityok explains. He agrees with his colleague saying that when large projects get the huge investment they deliberately raise the price which allows earning on crypto both for newbies and ticktockers who are coming to the crypto industry in swarms. In this way, project owners get more visibility and market share for their coins.
The days of scam projects are long gone, that’s for sure. Nevertheless, investing in small low-quality sales doesn’t bring the expected return more often than not. This thing triggers a negative mindset in the crypto community.
Those who are expecting a six-figure income get upset very often. According to Pityok, when you constantly turn a profit you won’t lose anything. In other words, don’t try to achieve sky-high ROI, under the risk of getting into the red. 20%-50% profit of the invested amount would be good enough. The most important thing is to look for strong projects that won’t have a negative Risk/Reward balance.
Both speakers are of the opinion that today Coinlist is the most appropriate platform for investment into profitable crypto startups.
The Forecast for Coinlist
The purchase of tokens on Coinlist through non-lock rounds is a guarantee of earning, Sergey ICO Drops understands. In today’s reality when chances for a bearish market are quite high, many projects are trying to quickly raise money on ICO. And there’s a number of good projects among those startups trying to get on Coinlist.
The volatility related to bouncing back and the correction of the top coins is not a reason to worry for ICO Drops owners. The total market cap is evaluated at around $1 700 000 000. TOP-100 cryptocurrencies are collectively estimated at $750 000 000. These data indicate that the crypto market has a solid financial cushion and that it can sustain rapid drops and corrections. According to Sergey ICO Drops, the crypto market would only get into the red after falling twice the current level.
As for Coinlist, non-lock ICO wouldn’t be profitable should their current level decrease threefold. That’s why those rounds are the most popular among investors.
Is it Worthwhile to Invest in Coinlist in the Bear Market?
Fears about a market decline stop lots of investors from taking part in token sales. Pityok explains that it makes sense to invest in top projects that have experienced management who won’t withdraw coins at the drop to the lowest point and will wait for the bear market.
These projects are not quick to quit when the market threatens to kill them and bury investors’ money along the way. Pityok advises tolerating projects that instead of living up to their promises of tapping into the market in a month, delay it for three, six, or twelve months. You’d better wait for the market to bounce off the bottom for the coin to be released on time and turn a profit.
Human Token is a good example of delaying launching an ICO. It should have been launched back then in 2018, but instead of that, the project was paused for the period of the market decline, and eventually appeared on Coinlist only in June 2021.
Some Insights from PricewaterhouseCoopers
To assess the potential of the future cryptocurrency market growth Pityok showed how hedge funds are involved in the crypto market.
According to the research made by PricewaterhouseCoopers:
- 21% of all traditional hedge funds have cryptocurrency assets;
- cryptocurrency accounts for 3% in the portfolio of investments of the world’s classic hedge funds;
- 85% of the hedge funds that have already invested into cryptocurrency plan to increase the investment in crypto in the foreseeable future;
- 26% of those hedge funds that haven’t invested into the crypto-market as yet plan to include this investment into their budget plan for the next year.
These numbers prove the trend towards speculative trading as well as the fact that big-name companies are interested in the growth of crypto as a long-term project.
The Bottom Line
It is highly unlikely that the cryptocurrency market will crash in the near future. The statements of Elon Musk and other trendsetters make an impact on the market for a limited period of time but don’t set the direction of strategic development.
As of today, there’s a chance to get involved in a prospective project through a non-lock sale on Coinlist. This could bring profit and an experience of working with crypto which is becoming a significant part of our day-to-day life.
