OPINION: The market needs $300bn in incremental funding over the next 3 years to keep the coin's price at the status quo
In an interview with Coindesk, Chris Solarz, Chief Investment Officer of Digital Assets at Amitis Capital, said that the era of so-called torrents of coins has come to an end. According to statistics, there are about 40 million tokens in the current crypto ecosystem, and he expects that 99.99 per cent of them will eventually go to zero, with no more than 100 tokens worth discussing. According to Solarz, the crypto market will need at least $300 billion in new capital over the next three years to maintain the current price, as the top 100 tokens will face huge unlocking pressure. The market for liquid tokens that hedge funds can allocate to is only about $30 billion, and retail investors have already moved on to meme coins - in other words, there simply aren't enough buyers to take up the sell-off right now. ‘That's the overhanging sword, and that's why there's no bull market for torrents as a whole in the near term,’ Solarz said. Chris Solarz is said to have been responsible for nearly $8 billion in asset allocation at investor advisory firm Cliffwater.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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