Specifically, these comments come from the Texas West Capital trader and crypto analyst Scott Melker. Melker, who goes under the Twitter handle “The Wolf of All Streets”, suggests that the cryptocurrency industry may be in for some rough months ahead.
Market drop reveals “massive dysfunction” in crypto
In a series of tweets, Melker suggests that the recent crypto crash has laid the cryptocurrency industry’s “dysfunction” bare. Moreover, Melker also says that the fallout from this will be massive – and we have not yet seen the worst of it. In fact, Melker says that cryptocurrency exchanges could soon begin to vanish:
“Thursday’s crypto crash exposed the massive dysfunction in what has been proven to be a very immature space. The fallout has not even begun – exchanges and projects will likely start disappearing in the near future.”
Although this sounds quite bearish, Melker does not believe this is the “end” of Bitcoin. Rather, he says that Bitcoin will eventually be “fine”. The crypto industry, however, has seen significant structural damage, according to Melker.
“Bitcoin will be fine”
One should note, however, that this structural “damage” does not extend to trading. According to Melker, trading will continue to operate much the same. Instead, Melker argues that the fact that the crypto market fell with the stock market highlights structural flaws.
“Bitcoin will be fine. Crypto as an industry is somewhat screwed for the foreseeable future in my mind. I’m not talking about the price of coins. People will continue to pump and dump them. Trading is fine. The core premise of crypto is damaged.”
The “core premise” Melker refers to is likely the notion that crypto would excel during a financial markets collapse. The recent stock market, however, caught Bitcoin and the crypto market in its sudden downturn.
Melker still believes blockchain “is the future”
Although one should note that another traditional “safe haven”, gold, also fell in recent days, the crypto market fell even more. As such, Bitcoin and cryptos recent price performance go against the “core premise” of being resilient in times of financial turmoil.
With that said, however, Melker still argues that blockchain has a role to play in the future. “Blockchain is the future. The few great companies and projects should and will rise to the top,” Melker said.
Consequently, he suggests that some crypto initiatives will likely disappear in the coming months and years. His previous comment that Bitcoin will be fine indicates Melker sees Bitcoin as one of these “few great companies and projects” that will endure.
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the blockchain industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.