The founder and managing partner of venture capital firm Morgan Creek, Anthony Pompiano, said that soon many cryptocurrency hedge funds will be forced to close, and that the ICO projects have fines and bankruptcy ahead. Pompiano is convinced that this is a natural process of cleaning up the "tourist" industry.
They do not even realize what is happening. I am establishing the email chain.
Register here for the HEAT 🔥https: //t.co/FWGNNJu0ry
– Pompa 🌪 (@APompliano) November 18, 2018
He stressed that most of the cryptocurrency funds will be closed due to the fact that investment managers will not be able to write the 20% commission on income at the end of 2018, because they could not increase the capital during the outgoing investment period.
At the same time, they will have to double or even quadruple the value of the assets under management in the next period to obtain those same bonds. Pompiano is confident that it is unlikely that most of these results will be achieved by 2020.
He added that many would close their funds and wait a year or more to return to the cryptocurrency investment market with a new product. The minority will try to survive a long bear market.
Pompiano also said that the decision of the Securities and Exchange Commission (SEC) of the US. UU With respect to the new companies of ICO, Paragon and Airfox, it indicates that most of the tokens issued within the ticks will be recognized as unregistered securities, the projects will be fined and investors may demand the investment back. Given the magnitude of the collapse of the cryptocurrency market in 2018, it is unlikely that at least one of ICO's new companies, believes the founder of Morgan Creek, can return investments in dollar terms. Thus, many of them will be declared bankrupt.
"The current bear market will be even worse for cryptocurrency funds and ICO projects. The situation will get much worse before the white line arrives. And that's fine The bear market pushes tourists out of the game, leaving only the real entrepreneurs who can create sustainable value. "– Are you sure.
Pompiano also has an interesting historical parallel:
"People were afraid of electricity, the first train, the first plane, the Internet, the hedge funds. Now they are afraid of bitcoin. They are afraid of what they do not understand. Do not be on the wrong side. "
– People fear electricity.
– People were afraid of the first train.
– People feared the foreground.
– People are afraid of the internet.
– People were afraid of hedge funds
– People were afraid of Bitcoin.
I do not understand Do not let yourself get caught on the wrong side of the story.
– Pompa 🌪 (@APompliano) November 17, 2018
On Monday, November 19, the price of Bitcoin continued to decline and approached $ 5,000.