Needless to say, Q1 wasn’t what we were expecting. And unfortunately, market declines and volatility — both in traditional and crypto markets – but is there a difference between primary or secondary tokens? Things are just getting started, according to Alexander Blum, crypto investment expert and Chief Operating Officer of fintech firm Two Prime. Here are the things most top of mind for Alex as he looks ahead to Q2:
As Miners Flee To Secondary Tokens Are Blockchain's Biggest Companies On Their Last Fumes?
- Markets are just getting started: Despite being lauded as a safe haven from traditional markets, Q1 has proven that crypto is anything but. Those with excess cash are not buying into Bitcoin and the market declines and volatility will continue.
- The Halvening coming up in May: With the Halvening coming up, many are looking at the much-lauded stock-to-flow model, hoping that BTC will hit $25K. Alex believes that will not happen due to a combination of the current economy and also traditional market cycle factors.
- Miners flee to secondary tokens: As BTC price goes up, Bitcoin miners are usually able to recuperate their costs, despite the rate of production decreasing. However, with BTC the way it is now, we will see a flow of miners moving to secondary tokens such as Tezos, Cardano, and Ethereum where it’s more profitable for the use of their computing power.
- Blockchain’s biggest companies shake it off: We will see a shakeout of some of the most well-known blockchain companies out there, Circle being an example. Circle recently sold off multiple divisions and is now focusing on their stablecoin. This will be a trend in the industry as blockchain companies are running on their last fumes, and the current market conditions have accelerated their declines.
- Traders seek shelter from the storm: As volatility continues in the crypto market, investors will be looking for shelter in the types of crypto with more reliable, stable value in order to preserve their gains or minimize their losses.
Alexander Blum: What’s in store for crypto in Q2 2020?
The following is our rough coverage of the 2021 Sohn Investment Conference, which is being held virtually and features Brad Gerstner, Bill Gurley, Octahedron's Ram Parameswaran, Glenernie's Andrew Nunneley, and Lux's Josh Wolfe. Q1 2021 hedge fund letters, conferences and more Keep checking back as we will be updating this post as the conference goes Read More
About Alexander Blum, Chief Operating Officer of Two Prime
Alexander S. Blum, Chief Operating Officer and Co-founder of Two Prime, has worked across blockchain hedge funds, startups, and consulted in the space for over seven years. Prior to founding, Alex started digital investment group Atomic Capital, developed a cryptocurrency mining operation and AI-crypto hedge fund, and worked as a technology advisor for the Bill & Melinda Gates Foundation, The World Economic Forum, and an economic development specialist for the Peace Corps.
About Two Prime
Founded by Dr. Marc Fleury and Alexander S. Blum, Two Prime is a fintech firm that focuses on the financial application of crypto in the real economy and is rethinking the approach to crypto application. By bridging the best practices of traditional finance and crypto, Two Prime is applying traditional models and economic theory to the space and introducing a new asset class - the FF Macro Token. By leveraging the fund formation dynamics of crypto, along with the credibility and stability of traditional finance, the FF Token model will create stable value and real use application, reignite the crypto markets, and bring real value to purchasers.