Amid the crippling price declines earlier this week, cryptocurrency traders seemed plagued by fear, uncertainty and doubt on all sides. However, Dermot McGrath, head of research at blockchain investment firm Sino Global Capital, said the company prefers a long-term view.
Shortly after one Thanksgiving Bitcoin Dip to $ 16,200, the news broke that the The Chinese government had seized $ 4.2 billion in cryptocurrencies as part of Plustoken Ponzi’s litigation. It was rumored that those tokens would be dumped in the open market, causing prices to drop further.
However, Matthew Graham, CEO of Sino Global, wrote on Twitter that he believed the majority of the Plustoken Bitcoin had been sold:
hmm my interpretation was * mostly * sold, but yeah there’s no need for FUD, agree https://t.co/NAq5iSRoXz
– Matthew Graham (@mattysino) November 27, 2020
Additionally, whether the tokens have been sold or not, McGrath advised in an interview with Cointelegraph that traders learn to look beyond the immediate headlines.
“In the crypto and blockchain ecosystems, it is important to be able to ‘cut through the noise,’” he said. “We are optimistic about Bitcoin over the long term and we continue to see the industry professionalize and mature as an asset class.”
McGrath also weighed in on a common bogeyman for Western crypto traders: Chinese cryptocurrency miners. Many have speculated that Chinese miners could launch a 51% attack on the network, and some have long mocked them for controlling huge chunks of the BTC offering:
the fun of China with a lot of bitcoins and mining a lot of bitcoins is absolutely nothing
– CryptoGainz (@ CryptoGainz1) November 27, 2020
However, McGrath rejects both concepts.
“One of the reasons” Chinese miners “have been a” bogeyman “to Western traders is simply a lack of understanding,” he said. “In theory, of course, we know that 51% attacks can occur, but the level of centralization / coordination and incentives simply doesn’t exist among the top crypto mining community in China.”
“As for the dumping of mined coins, etc. It is possible that Chinese miners are affected by external factors that cause them to handle mined coins differently. This is to be expected in different regions, ”he added.
When asked about price targets, McGrath declined to make moonshot calls. However, he shed some light on Sino’s investment philosophy.
“Choose projects and teams in which you share a vision and have conviction. Invest for the long term and don’t get caught up in daily market fluctuations, ”he said. “We invest in teams and projects in which we share a vision and have conviction. If we can find, support and incubate these projects, we’ve done our job. ”
While crypto asset prices resume their upward trend and we move on to a new bull market, perhaps McGrath’s wisdom is worth considering.