Erik Voorhees: 'Crypto Is Taking Over the World'

Erik Voorhees, the founder and CEO of cryptoasset exchange ShapeShift.io, has said that the crypto market has seen “four or five bubbles” which have resulted in extreme price fluctuations.

Voorhees, a business leadership and political economics graduate from the University of Puget Sound, noted during a recent interview with Bloomberg that “a lot” of the cryptocurrency price movements are cyclical.

He remarked:

People wait until they feel like the bottom is in...and [wait until] they feel like the bear market is over...and then they feel comfortable moving back into crypto. That’s probably the biggest reason [behind the recent crypto market rally.] Often, these things are a confluence of many different individuals making their own decisions.

According to Voorhees, there are only ten to twenty cryptocurrency projects that “have any importance” or relevance. The other cryptoassets, Voorhees said, don’t matter much and they “don’t really move” or affect the market.

Cryptos Increasingly Being Used For Remittance Payments

In response to a question about whether there’s something structural in the crypto market that encourages speculative trading, while also causing bubbles, Voorhees stated:

There have to be bubbles in crypto because [it] is taking over the world. And, it’s not going to advance 5% a month without end. If it did that, then people would start buying it up and frontrunning it, and turning it into a bubble. There’s no way to go from a zero dollar asset to one that’s worth trillions without massive speculation and massive volatility in cyclical bubbles.

Commenting on the different use cases for cryptocurrencies (so far), Voorhees pointed out that decentralized digital assets are increasingly being used in countries impacted by severe political and economic uncertainty and hyperinflation such as Venezuela.

Remittance payments using cryptoassets are also on the rise, the ShapeShift CEO revealed. However, Voorhees acknowledged that cryptocurrencies are still mainly being used to engage in speculative trading.

ShapeShift Required To Perform KYC Checks

When asked to comment on how ShapeShift first began offering convenient cryptocurrency trading services, which did not require ID checks, Voorhees said that it was somewhat similar to how people can convert their Euros to USD at airports, without having to show their passports (although this has changed recently as most major airports do require ID verification).

Voorhees also confirmed that ShapeShift’s crypto trading platform now requires users to comply with standard know-your-customer (KYC) / anti-money laundering (AML) checks. Although Voorhees believes people should not have to provide ID verification documents to engage in financial transactions, he pointed out that regulatory authorities require that exchanges perform KYC checks.

TRON Foundation Announces $20 Million TRX Buyback to Promote Market Stability

The TRON Foundation, an organization created to support the development of the TRON network, has recently announced a $20 million TRX token buyback that’s set to “promote community activity and market stability.”

According to a Medium blog post , the TRX buyback will be “by far the largest” token buyback plan the Foundation has ever had, and will have “the widest coverage in the secondary market.” The buyback is set to last for a year and will have several batches.

The TRON Foundation’s TRX holdings, it added, will be unlocked on January 1 of 2020, although the organization has no plans for its TRX at the time. Currently, one TRX token is trading at $0.034 after falling 10.6% in the last 24-hour period.

The token’s price dropped amid a major market sell-off that has seen the price of some altcoins – including Litecoin, EOS, and XRP – drop by well over 10%. The price of BTC is currently down 5.4% in said period. The selloff is likely being caused by traders taking profits off of the bull run we’ve been seeing since the beginning of the year.

Earlier this year, TRON announced a soon-to-be-released upgrade for its blockchain, called Odyssey 3.6. It’ll reportedly include features that are set to improve the network’s security and stability.

As CryptoGlobe covered, in May of this year the TRON Foundation announced BitTorrent, a leading peer-to-peer file sharing platform, would be incorporating the BitTorrent File System (BTFS) protocol to “allow users to receive and host storage on their computers with other individuals and businesses.”

The TRON Foundation has recently celebrated its Independence Day , as on June 25, 2018 the TRON mainnet was launched and its genesis block was created. Since then, the network has grown to over 3.1 million mainnet addresses, and an average of 1.5 million transactions per day, according to Justin Sun.