While cryptocurrency traders everywhere seemed to voice out their concern regarding the situation, head of research at blockchain investment firm Sino Global Capital Dermot McGrath shared that as a company, they choose to go for a long term view.
As part of the Plustoken Ponzi scheme court proceedings, the Chinese government had seized $4.2 billion in cryptocurrencies, which took place shortly after a Thanksgiving Bitcoin dip to $16,200. The rumor was that those tokens were set to be discarded at the open market, crashing prices further.
In spite of that, Sino Global CEO Matthew Graham disclosed on Twitter that he presumed the majority of the Plustoken Bitcoin had been sold.
McGrath, in an interview with Cointelegraph, suggested that traders learn to see pass recent headlines.
“In the crypto and blockchain ecosystems it is important to be able to ‘cut through the noise,’” he noted. “We are long term bullish on Bitcoin and we continue to see the industry professionalize and mature as an asset class.”
McGrath also contemplated Chinese cryptocurrency miners, a common boogeyman for Western crypto traders. Majority have hypothesised that Chinese miners could orchestrate a 51% attack on the network, and they have long been made fun of by few for regulating the BTC supply’s vast swaths.
On the contrary, McGrath dismisses both perceptions.
“Some of the reason that “Chinese miners” have been a “boogeyman” to western traders is simply a lack of understanding,” he cleared up. “In theory, of course we know that 51% attacks can occur, but the level of centralization/coordination and incentives simply does not exist among the Chinese miner community for top cryptos.”
“As far as dumping of mined coins, etc. It is possible that Chinese miners are impacted by external factors that would cause them to manage mined coins differently. This is to be expected across different geographies,” he continued.
Regarding price targets, when asked, McGrath abstained from making moonshot calls. However, he did clarify the details on the investment philosophy of Sino.
“Pick projects and teams in which you share a vision and have conviction. Invest for the long-term and don’t get caught up in day to day market fluctuations,” he conveyed. “We invest in teams and projects where we share a vision and have conviction. If we can find, support, and incubate these projects – we’ve done our job.”
Perhaps McGrath’s wisdom is worth considering as the prices of cryptoasset resume their uptrend and we persist into a new bull market.
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