based in london Digital asset investment and trading company turn profitable in the third quarter Disappointing for many after a disappointing second quarter, the blame was negligible. Terra’s UST stablecoin and its governance token LUNA Collapsederasing billions of dollars in value across the sector.
By comparison, Loss of approximately $21 million I don’t think so that bad. Still, it was CoinShares’ only negative quarter since the company went public. Even before Terra blew up, CEO Jean-Marie Mognetti said he considered himself one of the skeptics: Investors were promised a 20% return. . how was that possible?
“You know, I was scratching my head back in January/February last year, talking to my trading team, ‘What are you doing? What if something is missing? ” luck‘s New York office. “We keep seeing this extraordinary return being promised. They have to take some margin, which means they are getting much higher returns. will you do?”
Why couldn’t CoinShares or a similar company with smart and experienced traders and researchers find that alpha itself?
“We didn’t really seem to find a way to put the capital in to achieve such a very high number. Are we doing something wrong? ‘ Monetti continued. “And then you realize that there aren’t that many real players actually making a profit.”
“Clean up the industry”
Mognetti said he never met Kwon and can’t say much about his personality, but Terra’s failure, no matter how devastating, has long-term implications for cryptocurrencies. It should be profitable.
“It serves a larger purpose of cleaning up the industry,” Mognetti said. luckIt’s the same with lasting effects large forest fire“In the end, the forest will grow stronger, absolutely.”
The hard reset will allow CoinShares, its peers, and newcomers to cryptocurrency to “start building something stronger and stronger,” he added.
Governments can help with that, too. US Voters Want Leaders Who Understand Cryptothe person in charge of making the rules of cryptography openly admitting they need something betterand last week the chairman of the Commodity Futures Trading Commission said of an alleged turf war with the Securities and Exchange Commission over crackdowns on cryptocurrencies: But they haven’t yet.
There is not much debate these days about whether the industry needs clear guidelines. However, there is debate about how to prioritize such measures.
“I think clarity in regulation is very important for people who want to innovate,” Mognetti said. “But there are many other problems in the world right now. Right now, in the US, cryptocurrencies probably aren’t at the top of that list.” Similarly, in the UK, where CoinShares still has over $2 billion in assets under management, London is on the list of the next great global cryptocurrencies. Plans to turn it into a hub fell through as it resulted in the election of a third prime minister in about the same number of months.
Vanilla or Strawberry?
So what’s next for CoinShares? Mognetti was a bit hesitant on the issue of US expansion, but the lack of federal policy standards has led to the country-by-country regulatory battles we’ve seen in Europe and Asia. Mentioned how it would lead to state-by-state regulatory battles that reminded us of… President Joe Biden’s executive order on cryptocurrencies finally Moment of “Bending Point” Also stifle innovationWho can say?
Meanwhile, people in this field continue to innovate. A cryptocurrency financial product, “rather than biscuits or protein shakes, he could create a focus group and say, ‘Would you like vanilla or strawberry?’” continued Mognetti. “When it comes to cryptocurrencies in general, people are still not quite sure what they want.”
The trick, he added, is that CoinShares will build several products that will help propel the company through the next market cycle when Crypto Winter will eventually end. I don’t know exactly yet. And he’s not going to guess.
“If apple Tim Cook tells you about a new car to launch. Tim Cook tells you six months before you know it’s coming, and it’s ready to go. If you’re talking about a new car he’ll talk to you before he starts drawing it, this is not an arrogant approach but don’t get me wrong we do what we say and we do It’s pretty close to the Apple model that says.”
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