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While the cryptocurrency market ended 2018 with a crash, it is not all negative and negative.
We have collected comments from three major crypto players to get an idea of the great developments and trends they expect to see in 2019:
Paul Veradittakit, Pantera Capital
Veradittakit is a partner of Pantera Capital, one of the first investment companies in cryptocurrency, where it focuses on investments in venture capital and hedge funds. Pantera rounded more than $ 120 million for its third venture capital fund, known as Venture Fund III, and used the new funds to invest in projects including the digital asset platform Bakkt, Blockfolio, StarkWare and Synthetic Minds.
Among restrictive regulations, Veradittakit has seen a new trend in the space of fundraising crypts: the companies connected to Crypto or blockchain are collecting new funds by selling new shares, rather than issuing other tokens.
"A group of companies that raised capital using the initial money supply structure have mismanaged their treasury or realized they have not found a strong use case for their token: they need more capital and increase a net equity ride, "he said.
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Cryptographic companies that have raised funds in the beginning are going backwards, perfecting their documentation and tightening the rules of know-your-customer / anti-money laundering to identify if an investor is credited, he said.
Pantera Capital has invested in over 40 cryptography and blockchain projects through its initial coin offering fund. The company stated in a monthly newsletter that about 25% of these projects may have been in contrast with US securities laws and may have to repay their investors, according to Reuters in December.
Veradittakit has exposed three key themes that are looking in 2019.
One is an institutionalization of cryptographic space, which means that the industry will likely see the launch of more fully regulated and licensed products, from security tokens to new cryptographic derivatives, which will act as a bridge between institutional investors and the cryptocurrency market. Furthermore, the custody, the trading infrastructure and the data will be important for compliance and performance.
The latter is a tool for developers to create compliant and better apps for the user interface. Examples include intelligent auditing of contracts and ramps, or ways to transform the fiat currency into cryptocurrency or stablecoin.
It is also keeping companies that are building applications in addition to decentralized protocols. For example, companies that are building markets on Augur, an ethereum prediction market protocol that allows users to bet on the outcome of future events, from presidential election results to the price of the best cryptocurrencies, to obtain monetary prizes.
Another example is companies that create a domain service on Handshake, a cryptocurrency project supported by a large number of major venture capitalists in cryptographic space, including A16z Crypto, Boost VC, Pantera Capital, Polychain Capital and Founders Fund .
Fred Wilson, Union Square Ventures
Crypto will not be a refuge for general stock market volatility, Fred Wilson, a notable venture capitalist who co-founded Union Square Ventures, said in a blog post on January 1.
"I think we will see big dislocations in US leadership, a bearish stock market, a weakening economy, a series of problems with the global economy, including a disorderly Brexit and a China lazy, "he wrote. "All of this will lead to a more cautious investor position in the startup economy and the crypt will not be a safe haven for all of this, even though there will be signs of life in the crypt in 2019".
That said, it expects the crypto-bear market to end up this year.
"I predict that we will see some bullish runs, followed by pressures to sell that bring us back to repeat the lows," he wrote. "I think this end-of-fund process will end in 2019 and we will slowly enter a new upside in the crypt."
Wilson also said he saw significant progress and widespread consumer adoption in areas such as stablecoin, non-fungible tokens and encryption.
Anthony Pompliano, Morgan Creek Digital
Pompliano, also known as "Pomp," is a founding member of Morgan Creek Digital e a remarkable encrypted personality of Twitter. In November, he warned in a media post that a wave of crypto hedge could close due to the structure of the incentive rates and the prolonged crypto-bear market.
Pompliano said he expected that some crypts hedge funds would suffer "high watermark problems", referring to a contractual clause that guarantees "fund managers receive only their performance fee … if the fund's net asset value is more than high today compared to any previous investment period ".
After reaching a peak of $ 20,000 in December 2017, the bitcoin fell below $ 4000 per currency; also the altcoins suffered significant losses last year.
"Since then we have seen 50-80% reductions in equity values in some funds," said Pompliano. "This means that these managers will not receive a performance fee in 2018, which drastically reduces the revenue of the individual operator."
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