The emergence of cryptocurrencies is slowly redefining the overall economy.
Due to the rise of this financial phenomenon, new markets have come into existence, new businesses have been formed, and new jobs have been created.
Before cryptocurrency investments and “hodling,” them was all the rage, there were conventional hedge funds and pooled investments. However, the world post-cryptocurrency looks different on that aspect as well.
The changes which came with cryptocurrencies have also introduced multiple new methods for saving funds, for devising investments, and for managing one’s capital, leading to the creation of new businesses that serve in that very niche.
One such business is LDJ Cayman Fund, which is one of these emerging cryptocurrency funds with a reported investment capital of $200 million and its presence established in 12 countries across the world. The company and its advisory board is also known for managing and advising companies on their initial coin offering (ICO), which has become one of the most popular methods to raise capital for a business.
Therefore, it was interesting to hear the company’s views on the current cryptocurrency market through its founder during a recent event.
David Drake, the founder and CEO of LDJ Capital, spoke candidly on what defines a good ICO, what the current market conditions mean for the everyday investor, and what could be expected from cryptocurrency in the next year.
Regulatory framework is essential for an ICO
Speaking about ICOs, Drake mentioned that moves such as the ban on ICOs in China – which was an emerging market for this new financial asset class – and the way the government clamped down on the overall cryptocurrency industry have led relevant businesses to move out of the territory for good, essentially dropping China from any near-future races for the top 3 markets in cryptocurrency.
He mentioned that while this is not the end of cryptocurrency’s story in China, it would not be logical to expect any significantly positive moves that turn things around for the Chinese cryptocurrency industry within this year.
While on the subject of ICOs, Drake also stated that for an ICO to be regarded as being a quality investment, it needs to follow a few guidelines and ensure that it is doing everything it can to establish itself as a credible opportunity.
According to him, such qualities include but are not limited to an ICO’s regulatory framework, its business history (and what it can do to establish credibility in case it is a startup), and its equity capacity.
Regulations on cryptocurrency should be more like Japan and Facebook
Drake was quick to mention how the recent move of Facebook banning cryptocurrency ads could lead to calm the hype with the cryptocurrency industry and curb any bad actors from making quick bucks. He stated that it is a good step from the company as it allows people to learn more about the industry before they just get whisked away by ads that promise inexplicable cryptocurrency profits for no reason.
He also mentioned that since this move by Facebook was a good step, other institutions and countries should look into implementing similar regulations that are justified and go more on the route of Japan than other countries that look at the format of cryptocurrency as being harmful.
It is prudent to note that Japan has been one of the most lenient territories in the world when it comes to cryptocurrencies, a move that was signified by its legalization of cryptocurrency payments.
Cryptocurrency is not going anywhere
Drake also mentioned that the cryptocurrency industry – even if it faces a few hindrances in the current climate – would go on to become of the largest markets in the world with an estimated capital of 10 trillion dollars within the next few years.
Encouraging cryptocurrency investments, Drake mentioned that people should look into investing more while the price is low for cryptocurrencies, and it would start making its ascent once more.
The points certainly seem to hold significant interest
The suggestions and predictions provided by Drake point towards a good future for the cryptocurrency industry as a whole, which most seasoned investors and industry officials have also alluded towards.
While it remains to be seen how true those predictions hold to be, it is not incorrect to state that cryptocurrency is an emerging industry that has a lot of potential to it, and people who get to invest in it now are likely to benefit from it in the future.