Some major crypto firms need to stop making obvious, avoidable mistakes that destabilise the industry, cause financial chaos for investors and job losses for workers, says the CEO of one of the world’s largest advisory, asset management and fintech organisations.
The comments from deVere Group’s Nigel Green, a game-changing digital asset advocate who launched pioneering cryptocurrency exchange deVere Crypto in early 2018, come as some of the biggest players in the market continue to struggle in a volatile environment.
Bitcoin, the world’s largest cryptocurrency, which has shed 57% so far this year, fell below $20,000 over the weekend for the first time since December 2020.
He says: “I’m not in the habit of throwing shade at other companies, but in recent times we’ve seen many of the biggest players make huge, unnecessary mistakes. They went for enormously expensive TV ads, jumped on highest-tier sponsorships, rolled-out lending models offering astronomical interest rates on crypto deposits, and launched unprecedented hiring sprees.
“Now, what do we have? Firms laying-off swathes of staff, freezing client withdrawals and cutting back on investment.”
He continues: “Unfortunately, these brands have made some classic, obvious and avoidable dot-com era errors. These mistakes destabilise the industry due to the contagion effect, exacerbate financial chaos for investors and the pain of job losses for so many who were hoping to have a rewarding career in the future of finance.
“Such crypto firms would be better off – for the sake of their clients and the wider industry – growing through investing in top talent, innovation and development, and lobbying for sensible regulation with financial watchdogs.”
Despite the crypto price drops, like many long-term crypto investors, the deVere CEO is still accumulating Bitcoin: “I’m using the volatility as a buying opportunity; I’m topping up my investment portfolio at a lower price point. The reason why I’m still buying Bitcoin is that I’m confident that digital, global, borderless, decentralised, tamper-proof, unconfiscatable money is, inevitably, the future.”
He adds: “I’m still accumulating Bitcoin as its unique fundamentals haven’t changed. Bitcoin continues to produce block by block, the ecosystem and infrastructure continue to develop, major corporations and institutions continue to adopt it, and miners continue to increase their operations.”
Nigel Green says that he believes the crypto sector will bounce back stronger. “I’m sure lessons will be learned and the industry – the future of finance – will become more robust as a result.”