“Most Altcoins Are Dead and Completely Worthless”: Expert Explains Why Altcoins Won’t Perform
‘Most Altcoins Are Completely Worthless And Dead’: Expert Explains Why Altcoins Won’t Perform This Time Around originally appeared on Coinpedia Fintech News.
Jonah Van Bourg, a trader for cryptocurrency and precious metals at DRW and a former trader for oil futures at Goldman Sachs and Vitol, recently discussed why he is comfortable holding a contrarian opinion on altcoins. When Bitcoin has been in a bull market for more than six months, he suggested a methodical approach: purchase an index of the top thousand altcoins, weighted by market capitalization.
Although this tactic might have worked It only has two data points to support it in 2017 and 2021, hence it is not statistically significant for systematic trading. Because ordinary investors have been burned twice by not implementing the plan optimally and ending up holding the bag during the last two cryptocurrency bull markets, the expert predicts that it will fail a third time.
Jonah stated, “I believe the main reason for the selloff is a bigger light bulb going out, which is that most altcoins are completely worthless,” in an interview with Blockworks Macro. “VC unlocks worth billions of dollars are occurring, and retail is gradually realising that their preferred cryptocurrency is worthless.”
His main argument regarding tokenomics and altcoins is that fresh sources of capital are needed beyond random individuals. There must be genuine business activity
and upending conventional finance economics in order to attract the funding required to maintain multi-billion dollar valuations. He doesn’t think this will occur in the upcoming year or two, which will cause cryptocurrencies to perform poorly.
Jonah noted that some tokens, like Ethereum and Solana, could still be successful but cautioned against investing in the altcoin industry.
In closing, he said, “I think the majors like BTC, ETH, and Solana are an awesome long-term hold, but the meme coin casino is a fun way to play around and make money.” Anything in the altcoin area, which is in the middle of that risk curve, is dangerous. The number of people willing to purchase your garbage coin has run out, and I believe the entire altcoin market will drop from hundreds of billions of dollars in market cap to a lot lower, unfortunately.”
SOURCE : Coinpedia