Amid crippling price drops earlier this week, cryptocurrency traders appeared to be plagued by fear, uncertainty and doubt on all sides. However, Dermot McGrath, head of research at blockchain investment firm Sino Global Capital, said the firm prefers a long-term view.
Shortly after Thanksgiving Bitcoin fell to $ 16,200, it was revealed that the Chinese government had seized $ 4.2 billion in cryptocurrencies as part of the trial against the Plustoken-Ponzi system. Rumors swirled that these tokens were on the verge of being launched on the open market, which further plunged prices.
However, Matthew Graham, CEO of Sino Global, wrote on Twitter that he believed that the majority of the plus token Bitcoin had been sold:
hmm my interpretation was sold * mostly * but yes there is no need for FUD, agree https://t.co/NAq5iSRoXz
– Matthew Graham (@mattysino) November 27, 2020
Regardless of whether the tokens were sold or not, in an interview with Cointelegraph McGrath, McGrath recommended that traders look beyond the immediate headlines.
“In the crypto and blockchain ecosystems, it is important to be able to” cut through “the noise,” he said. “We are optimistic about Bitcoin in the long term and continue to see the industry as an asset class that is professionalized and mature.”
McGrath also spoke about a joint boogeyman for western crypto traders – Chinese cryptocurrency miners. Many have speculated that Chinese miners could launch a 51% attack on the network and some have long mocked them for controlling large chunks of the BTC supply:
The cool thing about China having a ton of bitcoins and mining a ton of bitcoins is absolutely nothing
– CryptoGainz (@ CryptoGainz1) November 27, 2020
McGrath, however, rejects both ideas.
“One reason that ‘Chinese miners’ were a ‘boogeyman’ for Western traders is simply a lack of understanding,” he said. “In theory, of course, we know that 51% of attacks can occur, but the level of centralization / coordination and incentive just doesn’t exist in the Chinese mining community for top cryptos.”
“As for the unloading of mined coins, etc. It is possible that Chinese miners may be affected by external factors that would cause them to manage mined coins differently. This can be expected in different regions, ”he added.
When asked about price targets, McGrath declined to make Moonshot calls. However, he shed light on Sino’s investment philosophy.
“Choose projects and teams in which you share a vision and are convinced. Invest for the long term and don’t let everyday market fluctuations catch you, ”he said. “We invest in teams and projects in which we share a vision and are convinced. If we can find, support, and incubate these projects, then we’re done. ”
As Cryptoasset prices resume their uptrend and we continue to move into a new bull market, McGrath’s wisdom may be worth considering.