The bear market had its immediate impact on the quality of the composition of the cryptocurrency investor spectrum, according to the latest research reports by One Alpha. Besides, the issues which are rampant across cryptocurrencies such as – hacks, scaling are expected to take a longer time to be resolved. The research also found that much of the rate of evolution in this industry would now be much slower, in comparison to earlier phases of development of the virtual currencies.
Bear Markets squeeze out the speculators
Apart from different aspects of the market performance being evaluated in the report, the part related to the bear market and its impact on the investor community has been the most significant findings of this research.
The focus on the EOS project’s Block.One ICO reveals that it could rise over $4.2 billion in initial funds, while Telegram ICO could find seed money to the rate of $1.7 billion. Thus, according to the report, the crypto funds which were launched in 2017 numbered as many as 194 funds, of which over 136 reportedly received key funding.
The CEO, Yaniv Feldman, of One Alpha, commented that the “The December 2017 and January 2018 boom and bust had a cleansing effect on the ecosystem, removing many of the speculators and leaving mainly real investors, operators, and builders in the market. This is what was necessary to move forward and build a successful ecosystem.”
Thus, the research revealed that the crypto market is currently populated by investors who are in the market for the long-term and may be called as purists. The general tendency of these investors is that they would like to own these cryptocoins for their own. Their viewpoints for such ownership is not necessarily about gaining value for the coin, though it is one of the primary reasons. However, there are many among the long-term crypto holders who prefer to have some digital money around them for purposes as varied as cyber ransom-payments if their account is hijacked; and even see it as a method to hold out against the degenerative practices of the political authorities.
Other Research Findings on One Alpha
Additionally, the researchers also found that there has been a drastic change in the patterns of funds being raised by ICOs. The merry days of the post-2015 high prices have ended in early months of 2018. In the period when bitcoin reached a valuation of $20,000 nearly, every new ICO issue was lapped by crypto-crazy investors, many of who trusted the decentralized technology would be a safety net to ensure their speculative investment would be sufficiently protected. However, that was not the case, and they were scammed, impacting the number of ICOs released in 2018. Further governments across markets also banned these coin offerings.
Thus the researchers highlighted that the challenges in the blockchain are overwhelming the rate or speed of progress and are further impacted by the instances of hacks and are further limited by the inability to scale projects at a faster pace to match adoption.