In the midst of the crippling price dips earlier this week, cryptocurrency traders seemed beset on all sides by fear, uncertainty, and doubt.However, Dermot McGrath, head of research at blockchain investment firm Sino Global Capital, said the firm prefers taking a long term view.
Shortly after a Thanksgiving Bitcoin dip to $16,200, news broke that the Chinese government had seized $4.2 billion in cryptocurrencies as part of the Plustoken ponzi scheme court proceedings.Rumors swirled that those tokens were poised to be dumped on the open market, crashing prices further.
However, Sino Global CEO Matthew Graham wrote on Twitter that he believed the majority of the Plustoken Bitcoin had been sold: hmm my interpretation was *mostly* sold but yes, there’s no need for FUD, agree https://t.co/NAq5iSRoXz
— Matthew Graham (@mattysino) November 27, 2020
Additionally, whether the tokens have been sold or not, in an interview with Cointelegraph McGrath recommended that traders learn to look beyond immediate headlines.
“In the crypto and blockchain ecosystems it is important to be able to ‘cut through the noise,’” he said.“We are long term bullish on Bitcoin and we continue to see the industry professionalize and mature as an asset class.”
McGrath also weighed in on a common boogeyman for Western crypto traders — Chinese cryptocurrency miners.
Many have speculated that Chinese miners could conduct a 51% attack on the network, and they’ve long been derided by some for controlling vast swaths of the BTC supply: the cool thing about china having a ton of bitcoins and mining a ton of bitcoins is absolutely nothing
— CryptoGainz (@CryptoGainz1) November 27, 2020
McGrath, however, rejects both notions.
“Some of the reason that “Chinese miners” have been a “boogeyman” to western traders is simply a lack of understanding,” he said.“In theory, of course we know that 51% attacks can occur, but the level of centralization/coordination and incentives simply does not exist among the Chinese miner community for top cryptos.”
“As far as dumping of mined coins, etc.
It is possible that Chinese miners are impacted by external factors that would cause them to manage mined coins differently.
This is to be expected across different geographies,” he added.
When asked about price targets, McGrath declined to make moonshot calls.
He did, however, shed some light on Sino’s investment philosophy.
“Pick projects and teams in which you share a vision and have conviction.Invest for the long-term and don’t get caught up in day to day market fluctuations,” he said.
“We invest in teams and projects where we share a vision and have conviction.If we can find, support, and incubate these projects – we’ve done our job.”
As cryptoasset prices resume their uptrend and we continue on into a new bull market, perhaps McGrath’s wisdom is worth considering.Share this: Bitfinex CTO Reinforces Rumors Exchange Has Raised $1 Billion in IEO The CTO of cryptocurrency exchange Bitfinex appeared to confirm the entity had raised $1 billion in fresh investment in new social media comments on May 13.Following rumors that began with a major shareholder in the platform announcing $1 billion confirmed in hard and soft commitments, CTO Paolo Ardoino took to Twitter on Monday to report… Crypto Payments Firm FoPay Acquires Exchange AliExchange For $2.9B 1 HOUR AGO Cryptocurrency payment service provider FoPay acquired Estonian cryptocurrency exchange AliExchange for about $2.9 billion.FoPay, a crypto payment service, acquired cryptocurrency trading platform AliExchange for about $2.9 billion News Cointelegraph apologizes for publishing this article, which did not meet our fact-checking standards.Price analysis 10/14: BTC, ETH, XRP, BCH, BNB, LINK, DOT, ADA, LTC, BSV The bond yields across most developed economies have dropped sharply since the central banks unleashed a slew of measures to counter the economic crisis caused by the COVID-19 pandemic.This could pose a challenge to the institutional investors who rely on the traditional 60/40 portfolio allocation between equities and fixed income instruments.This week Fidelity Digital Assets… Ethereum Classic Cooperative Warns Public Against Apparent Hard Fork Scam An Ethereum Classic (ETC) development organization is warning the public against a possible scam that is attempting to exploit users the day after the altcoin completed its hard fork.In a tweet posted by the ETC Cooperative on Jan.
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