The difficult economic climate has eliminated “tourists” from the crypto industry, leaving behind a stronger set of businesses.
This year’s difficult economic climate has eliminated some of the “tourists” from the crypto industry, leaving behind a stronger set of companies, said Irina Haivas, partner at venture capital firm Atomico.
“It’s not bad that the hype is gone,” she said at the Bloomberg Technology Summit in London on Wednesday, because it means people building crypto companies are aware of market conditions and ” want to build something more sustainable rather than speculate”. around.”
Edward Cooper, head of crypto at fintech startup Revolut Ltd., agreed. He said 2020 had been very frothy and euphoric with many crypto companies emerging without a viable business model.
“Then the tide goes out and those with good business models survive and grow stronger,” he said.
Cooper added that the trading volume of crypto assets between Revolut customers had declined, but the number of customers signing up was much higher than at the start of 2020, which he attributed to people acknowledging that cryptocurrencies were becoming a “consumer asset”.
The regulation of crypto assets has been helpful to Revolut’s business because it makes traditional companies feel more comfortable partnering with them, Cooper said.
Revolut received full FCA registration for its UK crypto operations earlier this week, Bloomberg reported.