“Consolidation appears to be a natural force in the crypto markets and so some kind of authoritative vigilance over the largest actors is called for ”
JASON TUCKER-FELTHAM GLOBAL HEAD OF CRYPTO AND FINTECH , IDNOW
Crypto ’ s dwindling trust : Not just XRP But first , while XRP ’ s collapse may have damaged trust in crypto-traded assets , it ’ s not the only area where trust itself has either declined or failed to materialise in the first place .
UST ’ s Field feels the issue lies in people ’ s intentions for entering into the crypto space . He says : “ Some crypto investors bought into the tech , others into the mythology of it and more just came for the returns . “ When Bitcoin fell from its all-time high ( ATH ) crypto lost much of the latter group , who didn ’ t really care whether their capital was in stocks , crypto or commodities . Those who had really bought into the doctrine , overly emotionally invested and lacking experience , waited and bore the brunt .
“ The mood switched from complacency and self-congratulation and has been tinged with an undertone of hopeful desperation since . These signals are picked up by the wider population who are consequently much more cautious .” Meanwhile , for Tucker-Feltham , crypto ’ s innate anonymity has offered fraudsters a platform to thrive , dissuading many from taking an interest in decentralised digital currencies .
As he puts it : “ Anonymity was initially a major attraction in the world of cryptocurrency , but as it ’ s become increasingly clear that exchanges with lax controls are being exploited by bad actors for illegal activity , that has understandably decreased the level of trust .”
122 December 2023