Anthony "Pomp" Pompliano, the founder and partner at Morgan Creek Digital Assets, an investment firm “focused on providing access to digital assets for institutional clients and wealthy family offices”, recently shared some of his views and insights regarding cryptoassets with CryptoGlobe.
Three Things Need To Happen Before Institutional Investors Get Serious About Crypto
Pompliano, a former product manager at Facebook, told us that “more investors need to be educated” regarding the fundamental concepts behind blockchain-based cryptoassets. His comments came in response to a question about what is required, or what needs to happen, before institutional investors make considerably more investments in digital currencies.
Pompliano added that more investors need to “become familiar with the technology and investment opportunities” in the crypto sector - before they begin to feel comfortable investing in digital tokens. Moreover, Pompliano explained that “more qualified [cryptocurrency] custodians need to be approved, including the entrance of well known firms like State Street” (a Boston-based financial services and bank holding company with over $2.7 trillion in assets under management).
The Time Factor
According to the economics and sociology graduate (from Bucknell University), “time is important because it allows institutional investors to understand the assets aren't going away and they can see their forward-thinking peers making money.”
When questioned about whether there are any correlations between the performance of traditional assets and the crypto market, Pompliano said:
It appears that crypto is uncorrelated for now. That could change over time but [it’s] hard to predict. Bitcoin and other cryptoassets have only existed during a long bull market so it will be interesting to see how they perform during a bear market or recession.
Bitcoin Is Reigning "King Of Cryptocurrencies"
As CryptoGlobe reported recently, Cory Johnson, Bloomberg’s editor-at-large and the chief market strategist at Ripple Labs, claims that XRP, a digital currency developed by Ripple (the company), is now being used more than bitcoin (BTC), the flagship cryptocurrency.
In response to a question regarding whether investor confidence in XRP is increasing, and so much so that it seems more people are interested in XRP than BTC, Pompliano remarked:
Completely disagree. Bitcoin is the reigning king of cryptocurrencies and I don't think that will change any time soon.
Notably, Pompliano’s comments regarding the digital currency investments have come as bitcoin’s price has dropped below the $4,000 mark (on November 24th, 2018) for the first time since September of 2017. At 21:20 UTC, the BTC price fell to $3,978 and by 22:50 UTC it dropped further to $3,761 - according to data from CryptoCompare. At press time, BTC is trading at around $3,880