There are already more than 1,000 cryptocurrencies. But the experts of the investment bank GP Bullhound are convinced that most of them will soon no longer exist.
Within the next twelve months, there could be a sharp slump in the crypto market. Anyway, this is the opinion of GP Bullhound experts, according to US broadcaster CNBC, citing a technology investment bank report.
Market correction on the crypto market
According to Sebastian Markowsky, the lead author of the report, more and more institutional investors are likely to push into the crypto market, driving prices higher. However, this is likely to increasingly lead retail investors to go to excessive rates. However, this development will then worsen the correction, which will come later this year. It could even use a veritable panic, according to Markowsky. For example, the cyber-currency market could collapse by as much as 90 percent.
This correction will obliterate most companies in the industry, according to the report. But the few survivors of this “crypto-winter” say the experts of GP Bullhound bright future opportunities with an unprecedented growth momentum.
The requirements will increase ICOs and will continue to exist in the future, according to GP Bullhound experts, although there have been some cases of fraud here.
An Initial Coin Offering (ICO) enables companies to raise capital, similar to an initial public offering (IPO). However, they do not have to spend any company shares on an ICO. Instead, they create a new digital currency and then offer it to investors for purchase. Buyers can trade the so-called tokens or coins at special crypto exchanges or use them for their particular benefit.
This form of raising capital is likely to evolve, Markowsky believes. He assumes that in the future, investors will no longer be prepared to provide even those companies with money that does not even have a product to show.