With a growing list of over thirty Cryptocurrencies, it seems any company with a decent tech division and plenty of capital can now make their own currency, and there’s nobody to say otherwise. What was once a tight market, is now getting out of hand, it there are even more coins in pipeline. Imagine in the future using AmazonCoins or FacebookTokens. Where is this all going?
Colorado based technology entrepreneur and mathematician Charles Hoskinson, known to have had a hand in the development of Ethereum, has been quoted saying “There’s an over-tokenization of things as companies are issuing tokens when the same tasks can be achieved with existing blockchains. People are blinded by fast and easy money.”
Companies in the EEA (Enterprise Ethereum Alliance) managed to raise almost $1.5 billion just from digital coin sales. That’s six times more than the amount from last year. The volatility of these decentralized currencies is becoming predictable, and people are starting to ask the question “are these sharp rises and crash falls a manufactured manipulation by major coin holders to create huge profits?”
With regulatory commissions gearing up to target cryptocurrencies, some are getting nervous, while others are saying “it’s about time!” Many major investors such as Bill Gates and Wences Casares have been known to suggest the long game is the best strategy, and yet such a volatile market is clearly advantageous for buy low-sell high tactics.
Creating an international regulatory body might create standards for everyone attempting to form a token brand, but anonymity will be out the window, which is part of the appeal for many cryptocurrency investors. Furthermore, any price manipulation that occurs right now will go unchallenged, and certainly not publicized, but a regulatory commission would be expected to make a full investigation.
Until then, the predictable highs and lows are available for all investors to profit from, and until the behavior changes, the proactive investor with a large and flexible capital will benefit the most.