The cryptographic money market is currently going through a turbulent period. Indeed, the sector of investment funds in cryptocurrency has recorded a disturbing performance decline since the beginning of the year.
In addition, according to the report of a financial group specializing in services for professionals in the financial markets, at least nine crypto-funds stopped their activity during the first quarter of 2018. A downward trend that seems to be supported by the considerable reduction demand and return on investment even though some actors still have faith in the future of technology.
9 Crypto-Funds Have Already Ended Their Activity This Year
Last year the cryptocurrency sector launched more than 150 hedge funds. A situation that was certainly linked to the incredible increase in the value of Bitcoin from $ 1,000 to nearly $ 20,000 and the remarkable performance of some altcoins.
However, all these spectacular circumstances seem far away for this year. Indeed, the performance of some investment funds specializing in digital assets has declined sharply since the beginning of 2018. Apart from that, more than 9 crypto-funds like Alpha Protocol and Crowd Crypto Fund also stopped their activity.
For its part, “Alpha Protocol” has for example published on its website that it was better to reimburse private contributors because of the increase in potential risks related to the regulation of cryptocurrency. In the case of Crowd Crypto Fund, the platform has removed its Twitter and Facebook accounts and its website.
Entrepreneurs Still Believe In The Success Of Certain Assets
Apparently, the decline in performance of investment funds and the bearish market 2018 have not affected the enthusiasm of some entrepreneurs. According to the testimony of Rick Marini for example, a founding partner of a company investing in crypto-funds, he was contacted daily by three new potential crypto-funds on average.
Circumstances that encourage entrepreneurs to believe that certain assets still have strong potential for appreciation. Despite this, most of these actors have a certain mistrust of the situation.
Moreover, Rick Marini has clearly indicated this doubt by saying that the funds will try to build on the good performance of last year to try to reverse the situation, but that it could prove complicated. He also added his company intends to bet only on one or two structures this year.
More Than 20% Of Losses Generated In The First Quarter Of 2018
According to the statement of Kyle Samani, co-founder of the investment fund Multicoin Capital, the new capital has clearly slowed down, even for some of the most prestigious funds. Indeed, the average performance of crypto-funds saw an average loss of about 23% in March.
This creator of funds dedicated to cryptocurrency has also added that its bottom does not bet on the rise in Bitcoin prices for the moment. And this is like many other players who favor other cryptographic currencies with more impressive performances.