The institutional money is coming, but when? That seems to be one of the questions 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 without regulation, 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 - these guys are positioning themselves specifically for institutional capital. No one is going to pull you aside and say, “hey, the institutions are coming in next week, start buying”. We would love it if that were the case, but unfortunately, it’s not.
We must look at the evidence and the deals being made and connect the dots. For instance, QASH is creating their World Book to link all the biggest exchanges together to pool liquidity. This is a project that is specifically targeted towards institutions as liquidity in crypto is a big issue.
We love to make comparisons to the .COM boom and quite frankly, it’s because we are firm believers that history repeats itself. There are so many similarities in what is happening now to 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.
To put things into perspective, 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 to 94 and 95 and believe that 2018 will be the year where the regulatory pieces of the puzzle are put in place. This will undoubtedly pave the way for institutions and venture capitalists alike. When this happens, it will be unlike anything we’ve ever seen before.
Disclosure: I am/we are long BTC-USD, QASH-USD, ETH-USD.