The cryptocurrency suffered several declines in 2018. As many investors and traders are exiting the market, a few still remain optimistic. Greg Tusar, a former Goldman Sachs Group Inc executive is thrilled by the digital assets despite the dismal cryptocurrency year. He said:
“It feels like being at the early days of trading equities electronically. It’s early stage, there’s a lot of opportunities to build great businesses and have an impact.”
The co-founder of Tagomi Holdings is working with other investors to offer live electronic brokerage prime services. The Tagomi platform integrates liquidity across different exchanges. Moreover, it provides enhanced trade reporting and transparency to customers including high net-worth individuals and hedge funds. He is not the only bullish crypto investor with Tom Lee claiming that Bitcoin is undervalued and Jeremy Allaire, Circle CEO, showing his optimism about Bitcoin‘s future.
Crypto investors currently face many challenges. Some of the challenges include executing large orders, problems engaging with large exchanges, concerns over custody, and many others. Despite these challenges, Tusar believes that there is a significant longer-term demand for digital assets. Tagomi Holdings aims at helping clients understand the transformative impact of blockchain and crypto technologies.
The launch of Tagomi comes in the midst of a cryptocurrency universe implosion. Most of the major tokens shed off billions in market value after an impressive surge in 2017. Bitcoin has so far dropped by over 75% from its highs of near $20,000 a year ago. Some analysts think that it could fall to around $1,500 except for a few.
However, Tagomi is not deterred. They said that the launch aims at engaging the clients. The people involved with the platform still have faith in the technology. Tusar added:
“The people we are engaging so far are still interested and engaged because they see what this technology can do over the long-term.”
Tusar also feels that the digital assets currently thrive in their preliminary stages. Given time, they have the potential of transforming the global financial space.
Cryptos have experienced pressure from many US watchdogs and regulators increasingly cracking down on the market. For instance, the Securities and Exchange Commission is hesitant to back a Bitcoin ETF due to persistent surveillance and price manipulation worries. Also, the SEC fined two companies that had not registered their ICOs as securities.
However, as prices and volatility fall, the suite of tools becomes important. A Tagomi executive member said that:
“In periods of lower volatility, tools like that Tagomi provides, which reduce transaction costs, will become far more important.”
Prolonged Slump Discourages Institutional Investors
Analysts from JPMorgan Chase think that the persistent crypto bear market is a turn off for institutional investors. These sentiments were published in Bloomberg reports on Tuesday, Dec. 18. Thus, a change of interest for crypto markets may be happening.
According to the JPMorgan analysts and global market strategist Nikolaos Panigirtzoglou, institutional investors’ involvement in BTC is fading. They also said that:
“Key flow metrics have downshifted dramatically.”
Until the market shows a formidable sign of recovery, the institutional investor will maintain a ‘wait and see’ strategy.