Joyce Kim, co-founder of $3.5 billion blockchain network Stellar and cryptocurrency hedge fund managing partner at SparkChain Capital, said in an interview with Chosun that 99% of blockchain sector of investors are interested in short-term profits rather than the technology. At a cryptocurrency conference covered by mainstream media and publications like Chosun and JoongAng, Kim discussed the recent hacking attack of major cryptocurrency exchanges in South Korea, the size and the vision of SparkChain Capital’s cryptocurrency fund, and the long-term future of the global cryptocurrency sector.
Value comes to great development teams that actively build products and base layers applicable to a variety of blockchain-based decentralized applications. Currently, however, the vast majority of the cryptocurrency market focus on generating short-term profits off of initial coin offering (ICO) projects and upcoming blockchain platforms. Kim emphasized that the focus of investors on short-term profitability instead of technology must change.
Five years ago, Kim explained that the cryptocurrency market had significantly more investors that were simply interested in the technology and the future of the blockchain sector. Now, most investors are aiming for three to six-month exits.
Kim said: “Just about five years, the blockchain industry had more people interested in the technology rather than profits. However, now, 99 percent of the investors that are involved in the blockchain sector are in it for the money.
Capital is important, but this profit-first structure in the market could ruin the development of the blockchain.” If more capital is injected to the cryptocurrency market before products can be built and decentralized platforms can be commercialized, developers and projects will be pressured to showcase solutions and technologies that are merely not ready to be implemented. Consequently, errors could emerge and the market could implode, as projects fail to meet the high expectations of developers. Read more from cryptoslate.com…
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