Follow Us

Follow us on Twitter  Follow us on LinkedIn

12 February 2020

Bloomberg: Zombie crypto coins beat Bitcoin during this year’s resurgence

The bursting of the crypto bubble was supposed to be the end for thousands of coins that sprung up in the wake of Bitcoin’s staggering success. But guess what digital tokens are outperforming the original as it surges more than 40% to $10,000 this year -- coins like Einsteinium and Kick that were written off long ago. Those coins, along with dozens more, have more than doubled since December.

These so-called alternative (or alt) coins are staying afloat and even flourishing thanks to the hundreds of exchanges worldwide offering investors attractive terms to trade and capitalize on the renewal of risk taking in crypto. Malta-based giant Binance, for instance, has also been issuing fresh coins on its network. While the market for initial coin offerings is a tiny fraction of what it was in 2018, it’s still alive. Last year, companies raised $3.26 billion through various types of coin sales, according to tracker CoinSchedule.

The coronavirus epidemic in China may actually be helping to fuel risk-taking rather than haven buying, said Omer Ozden, chief executive officer of RockTree Capital, a Beijing-based investment advisory firm and merchant bank.

“Quarantines have kept millions of people isolated and forced digital-asset traders and investors to stay at home and trade digital assets from their mobile devices,” Ozden said. “This has led more traditional investors to look at digital assets as a viable diversification in their portfolio against the continued downward pressure in the region’s markets.”

Ozden expects an uptick in ICOs, partly the result of the recent rise in alt-coin prices, and because this is a transition year for Bitcoin, with rewards the network pays to the so-called mining pools that support it to be cut in what’s become known as the halvening.

Full article on Bloomberg (subscription required)

© Bloomberg

< Next Previous >
 Hover over the blue highlighted text to view the acronym meaning
Hover over these icons for more information

Add new comment