Some major crypto firms need to stop making obvious, avoidable mistakes that destabilise the industry, says the CEO of deVere Group.
Nigel Green, who runs one of the world’s largest advisory, asset management and FinTech organisations – as well as cryptocurrency exchange deVere Crypto – says they are causing financial chaos for investors and job losses.
Bitcoin, the world’s largest cryptocurrency, has shed 57% so far this year. It fell below $20,000 over the weekend for the first time since December 2020.
“I’m not in the habit of throwing shade at other companies, but in recent times we’ve seen many of the biggest players make huge, unnecessary mistakes,” said Green.
“They went for enormously expensive TV ads, jumped on highest-tier sponsorships, rolled-out lending models offering astronomical interest rates on crypto deposits, and launched unprecedented hiring sprees.
“Now, what do we have? Firms laying-off swathes of staff, freezing client withdrawals and cutting back on investment.”
He continued: “Unfortunately, these brands have made some classic, obvious and avoidable DotCom-era errors.
“These mistakes destabilise the industry due to the contagion effect, exacerbate financial chaos for investors and the pain of job losses for so many who were hoping to have a rewarding career in the future of finance.
“Such crypto firms would be better off – for the sake of their clients and the wider industry – growing through investing in top talent, innovation and development, and lobbying for sensible regulation with financial watchdogs.”
Green, who says he is continuing to buy Bitcoin “as the fundamentals haven’t changed”, believes the crypto sector will bounce back stronger. “I’m sure lessons will be learned and the industry – the future of finance – will become more robust as a result,” he said.