The cryptocurrency market must face the reality of appropriate regulation if it is to evolve as an alternative financial ecosystem. That is the view of some crypto investors that AsianInvestor has spoken to since the Terra/Luna stablecurrency collapse.
Rajiv Manoharan, principal at Melbourne-based Manoharan Capital who invests in crypto businesses, acknowledges the damage the recent turmoil has caused, but is more bullish than most about the asset class.
“This is, of course, a concern; no one wants to lose money or see instability and loss of confidence in any market. However, historically across equity markets and others, as part of the maturing cycle and institutionalisation of the crypto markets, these ‘black swan’ events are unfortunately going to be part of the digital asset and crypto journey.”
Others close to the market are more concerned with the structural problems that the debacle has highlighted.
“From my observations, we are still a while away from a meaningful crypto market. There are those who believe these market shakeouts are part and parcel of iterations and fine tuning. I do not personally think that is the case,” Singapore-based private financier Edward Foo, told AsianInvestor.
“The reality is that no one has the ability to accurately predict where crypto markets are headed now; even those who are in a strong enough position to guide market direction. Even they can get caught out by surprise events,” .
“That said, I believe some…