The institutional money is coming, but when?
That seems to be the question on everybody’s mind right now. Everybody heard about the $400-million-dollar deal Circle did to acquire Poloniex, but not many people know that there was another $400 million-dollar deal done with a South Korean exchange. This is serious money we are talking about here. When you put $400 million dollars into an exchange within an industry that doesn’t have the same kind of regulations that the traditional markets do, that’s a big bloody gamble.
For those with a keen eye for detail and an understanding of just how revolutionary this technology will be, it spells out one thing, and that is these guys are positioning themselves specifically for institutional capital. No one is going to pull you aside and say, “hey bud, the institutions are coming in next week, start buying”. We would love it if that were the case, but unfortunately, it’s not. You have to look at the evidence and deals being made and connect the dots. For instance, what QASH is doing by creating a World Book to link all the biggest exchanges together to pool liquidity is a project that is specifically targeted to institutions (we have a review coming out on this soon). This is big issue that institutions are facing right now, but these problems are actively being solved.
At CryptoInMinutes, we love to make comparisons to the .COM boom and, quite frankly, it’s because we are firm believers that in markets history always repeats itself. There are so many similarities in what is happening now and what happened in 94 and 95. Before 94 and 95 there was no big institutional money buying internet stocks, It was mostly individuals and mom and pop investors. In 94 and 95, the tech industry and the NASDAQ crashed and it was not pretty. But during that time, while individual early investors were all cashing out, the rate of institutional investors was increasing. Essentially, individual investors were giving away their shares to institutions for pennies on the dollar and by the end of 2000, they had put over $5 trillion dollars into the space.
Just let that sink in for a second. After factoring in almost 20 years’ worth of inflation, that would be $10 trillion dollars at today’s valuation. The crypto market cap at its all-time high last year, hadn’t even topped out at $1 trillion dollars. We believe we are in a very similar situation as 94 and 95 and we believe that the theme of 2018 will be putting all the regulatory pieces in place for the institutions and venture capitalists to get involved. When this does happen, it will be unlike anything we’ve ever seen before.
As mentioned before, we have another review and analysis on a project we like that is solving real world problems coming out soon, so stay tuned