Volatility Didn’t Kill Crypto. It Changed It.

After a severe bout of volatility and a series of several spectacular cryptocurrency failures earlier this year, some voices from the mainstream financial industry were quick to declare these assets dead, but people in the cryptocurrency and blockchain industry say that consultants’ interest in digital resources is greater than ever.

“Whenever a withdrawal occurs, we see demand for education and cryptocurrencies increase whenever it exposes a lack of quality education and information supply,” says Jahon Jamali, co-founder of Sarson Funds, a crypto asset manager. and education provider of financial planners.

Despite prominent opponents like economist Nassim Taleb and legendary investor Warren Buffett, cryptocurrencies may already have a strong foothold.

For example, they are already being used to provide essential services to disadvantaged and non-banking communities, says Ben Richmond, founder of CUBE, an AI-based regulatory and compliance research firm. “Cryptography in and of itself is becoming something that is not yet systemic, but it is also very important in traditional financial markets,” says Richmond. “As space matures, we are seeing the rises and falls, the good and the bad in that world.”

Hard times
In the last six months there have been more drops than increases, more negative than positive. In May, Terra, a stablecoin associated with the cryptocurrency Luna, went bankrupt, causing a $ 60 billion washout. In the following weeks, cryptocurrency hedge fund Three Arrows Capital collapsed, causing the collapse of Celsius Network, a cryptocurrency lender, and Voyager Digital, a cryptocurrency exchange.

“This is part of what brought us into the 2008 financial crisis: who could have thought that all these things could have gone wrong? Everyone did it, everyone made sure each other was solvent, “says James Niosi, CEO of InvestDEFY, a Canadian company specializing in structured products for digital assets.” The same thing is happening in cryptocurrencies. “

Not only did the headlines aesthetically look like the early stages of a potential financial crisis, says Niosi, but many investors were left in the hands because these projects failed.

But instead of causing a wave of people moving out of the digital asset space, the turmoil may simply have led investors to several crypto brokers. While cryptocurrency was first adopted by self-directed investors who often wary of traditional finance, its recent performance has brought a wider swath of the public and newcomers are looking for regulated solutions to access digital assets, says Gene Grant. , CEO of LevelField Financial.

“People are already asking how to integrate digital assets into their portfolios,” he says. “Regardless of their wealth stature, people want to be involved. Right now, big companies aren’t offering wealth managers the ability to provide the advice that clients desperately want. “

LevelField is looking to become a complete financial services company that encompasses digital asset services and traditional finance. The company is in the process of acquiring a full-service charter bank. He already owns a small investment bank and broker-dealer, and will spin off an asset management company and RIA in the near future.


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