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End Of 2019: 95% Of Crypto Companies Bankrupted Will Give The Market Impetus To Grow

08 November 2018 18:27, UTC
End Of 2019: 95% Of Crypto Companies Bankrupted Will Give The Market Impetus To Grow
By Anna Zhygalina

Yesterday, the II international forum and exhibition Blockchain Life 2018 started in St. Petersburg. Comparing to the last year, when event attracted more than 1,700 guests and  won the title of the largest conference in Eastern Europe dedicated to this industry, this year forum has gathered about 5,000 guests, which makes the event noticeable for the whole Europe, although it is inferior in scale to the Malta Blockchain Summit that ended a week ago.

The topic of the crypto market evolution is revealed at the forum by many eminent speakers: MD of Huobi Global Edward CHEN speaks about the trends in the crypto exchanges development, the odious BCH evangelist Roger VER during the skype conference tells how cryptocurrencies will change the world, the Free Republic of Liberland Founder Vit JEDLIČKA reveals the exciting question of the inevitable ICO bubble elimination and Martin KUVANDZHIEV shares his experience of overcoming the 51% Attack on the blockchain.

Apparently, the organizers wanted to bring intrigue by declaring the several secret speakers from China and Singapore. But it is still not clear how to track those who are hiding under the mask of incognito among the numerous speakers.

A separate section is devoted to the state regulation of the crypto industry. According to the member of the Expert Council on Digital Economy and Blockchain Technologies at the State Duma of Russian Federation Vitaly CHEREMENSKY there are no tangible changes in Russia in the space of the crypto market regulation, because the law will be adopted only when the state reсognizes the real need and benefits for large players. Although he is convinced that regulation of mining would be of great benefit for the Russian budget since with a surplus of electricity and a proper legislative framework, miners would be obliged to pay taxes to the treasury. "But now the need for regulation is gone, because the volume of mining has decreased dramatically due to the greater complexity, so the only large players can earn in such conditions", expert sais.

As for the development of cryptocurrency space for the next year, the expert notes an interesting trend: the market is crowded, but the quality of key players has not changed. Despite of the fact that the new players appear all the time, only those companies that made a statement a year or two years ago are still active and stable. In addition, if analyzing the rates of cryptocurrencies and the number of search queries, it is becoming clear that the interest to the crypto market is falling. Every day the situation becomes more and more complicated: some ICO projects just die, others become larger, joining the successful teams. In his expert's opinion, there is a high probability to see the new cycle begin at the end of 2019, that will give impetus to the growth of the entire market. But before that, the industry will reach the bottom: about 95% of companies will disappear and only strong players will remain to increase their expertise and gain even greater audience loyalty than they had before.

There is an anonymous commentator, who stands in solidarity with this opinion of the State Duma expert. In an interview for he said that Russian crypto market suffers from pathos: "Young projects were just lucky: they managed to buy the crypto currency in time and successfully merge it. They did it once or twice - at most; if they did it a hundred times, it would be possible to talk about a pattern. But they don’t have enough patience, and now they are so short-sighted looking for a momentary profit that they can’t wait for the market to come out of the bearish state”.

Asked to keep his incognito expert takes part in the exhibition section of the forum with the stand of his company, making it from the opposite motives: "We participate in exhibitions not for direct promotion or quick sales, but rather undertaking long-term efforts to create strong recognition for our project. People will have confidence in our brand, because they saw it in a certain atmosphere. It is expensive, but effective in terms of work for the future”.

To date, the forum organizers have planned a ICOTOP Show Pitch section, which will host a presentation of projects for leading cryptocurrency funds and private investors.

It is noteworthy, that the event organizers chose the largest Chinese restaurant in Europe as a place for after-party. According to Blockchain Life 2018 initiator Sergey KHITROV it was done intentionally: the forum was attended by a large number of speakers from China, as one of the conference goals is to build close relations between the crypto industry of Russia and China.

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