Now that 2018 is over, many have begun to look ahead. The crypto industry and its pundits are no exception. And with the (near) collapse of Bitcoin-friendly startups in 2018 in mind, industry insiders have claimed that this unfortunate trend will continue in 2019.
Crypto Startups, Bitcoin Funds May Go Bust
Speaking with Yahoo Finance U.K., Anthony Maguire, a former Facebook staffer turned blockchain advisory startup chief, has claimed that this sector’s companies will continue to struggle. Maguire, who worked in Facebook’s Global Accounts branch, noted that “tech startups go bust all the time,” likely indicating that the folding of crypto-centric firms isn’t the end of the world.
The Frontier X chief chalked up his forecast to the performance of cryptocurrencies, especially Ether (ETH), as the asset was essentially the backbone of the token sale boom (and subsequent bust). Maguire explained that less “poorly managed companies” are being propped up by high token valuations, decreasing financial runways and overall valuations.
And interestingly, the underperformance of industry startups has already begun. In recent weeks, Bitmain, Huobi, Spankchain, Steemit, ConsenSys, and countless others have sought to purge employees, while some organizations have folded entirely. Case in point, in early-December of last year, ETCDEV ran out of funding, shuttering its doors entirely.
Coupled with the collapse of startups, Maguire predicted that cryptocurrency investment funds may go under, adding that confirmation bias has likely swayed some early BTC investors to go all-in on investing, even if their prior experience, knowledge, or credentials is lackluster.
This dreary outlook for the next 12 months was accentuated by one prominent Bitcoin trader, who goes by the moniker The Crypto Dog.
Wisdom of the crowd suggests we are looking at a very dreary 2019.
— The Crypto Dog📈 (@TheCryptoDog) January 2, 2019
Yet, the blockchain entrepreneur noted accentuated that 2019, while bringing less hype, will see insiders work harder, producing deliverables that will satisfy consumers.
2019: The Year Of Crypto Deliverables, Work, And Less Hype
This sentiment of the advent of true innovation (and products, services, and platforms to prove it), was echoed by Fred Wilson, a co-founder of investment juggernaut Union Square Ventures. Through a post on AVC, his well-followed blog, the American financier noted that the countless ambitious promises made in 2017, if fulfilled in the upcoming months, will push this industry to new heights.
As many crypto investors are aware of, 2017 was rife with projects promising global domination (essentially), but subsequently failed to accomplish even a fraction of their initial goal over 2018. Wilson explained that he hopes that household names, like Filecoin and Algorand, will ship their platforms.
The investor added that he also expects for “next-gen” smart contract platforms, like Cosmos, to challenge the hegemony that Ethereum has established, creating healthy competition. This will not only lead cryptocurrency values higher but will also bolster this industry’s underlying fundamentals.
Even crypto pioneer Jed McCaleb, who co-founded Mt. Gox, Ripple and XRP, and Stellar Lumens, had a similar comment on the matter of hype and bearing down. The industry legend recently claimed that this industry’s hype has all but dissipated, as consumers start to wake up to the fact that “90% of crypto projects are B.S.”
Yet, McCaleb ended the interview on a positive note, explaining that he hopes that his brainchild in Stellar, along with the crypto sector at large, will turn for the better in 2019.
Even Maguire himself was cautiously optimistic, closing out his interview with Yahoo by stating:
“People who are still going to [crypto] meet-ups right now are people who really care and people who are in it to really solve hard problems.”