Crypto: Do ​​Institutional Investors Still Trust?

Last week saw a big upheaval in the crypto industry. The FTX exchange joined the ranks of companies that went bankrupt in 2022. But FTX’s descent into hell was mostly the result of corporate mismanagement. However, the optimal management of assets is one of the sine qua non conditions for the participation of institutional players. Does the FTX affair sound the death knell for the relationship between cryptos and institutional investors?

A loss of confidence for cryptos, which is greatly underestimated

Anthony Pompliano is a lifelong entrepreneur and bitcoiner. He is known for his stances in support of the flagship crypto. Last week, he apologized for the occurrence of the incident with FTX. He posted a thread on Twitter explaining the implications to his 1.6 million followers. According to him, the trust game between institutional investors and cryptos is now over. But this is something that seems not to be perceived by the players in the sector.

“Based on conversations I’ve had over the past 24 hours, players in the crypto space are underestimating the extent of the damage done to the wider industry, following the collapse of FTX and its associated entities (…) The largest pools of capital in the world now know that the industry is not ready”does he have writing.

Pompliano’s Thread

Will the situation open the door to bitcoin?

If Pompliano believes that this loss of confidence will affect the markets, he tempers his point of view with the case of bitcoin (BTC). According to his explanation, institutional investors will shed other cryptos, but will continue to invest in bitcoin. This, because the flagship crypto offers more security and less uncertainty.

“The loss of investor morale in the broader crypto ecosystem will drive more observers to bitcoin, attracted by its simplicity and robust architecture (…) In my view, bitcoin will not only survive, but it will thrive in coming years “he predicted.

Anthony Pompliano believes that eventually the flagship crypto will definitely take center stage. It will solve the crisis of confidence and provide the solution to the problems of crypto investments, he concluded.

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