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Bitcoin, the leading cryptocurrency, continues to preserve its lateral stance, oscillating between the $26,000 and $27,000 range. While the BTC price remains stable, some altcoins persist in their green trajectory. Matt Zhang, a former senior executive of Citi, who is responsible for crypto investments, issued a stern warning to altcoin investors. Currently serving as the investment manager at Hivemind, Zhang issued alerts against certain altcoin projects.
Zhang Sounds the Alarm on Altcoins
Zhang emphasized that there is significant price volatility in the crypto sector due to the chaos created by lawsuits from regulators. He underlined that some tokens are risky for investors new to the crypto scene. Zhang pointed out that many cryptocurrencies and tokens are delaying the launch of their main network. The reason for this, according to Zhang, is quite obvious:
Some of these projects are aware of the situation and, in fact, many of them should not have had a cryptocurrency in the first place. There is a concept within the scope of Web3, and there’s a dominant thought that almost every company here should have its own token. Yes, having a token is a nice step for creating a community, but many businesses could do other things instead of starting with a token.
Be Wary of Tokens Entering the New Sector
Zhang expressed that venture capitalists are also cautiously approaching newly launched crypto projects. Zhang, stating that the lawsuits being opened and securities debates will lead to problems, warned investors against “new” projects.
Even though Hivemind entered the market in 2021, with its $1.5 billion fund, it definitely stands among the industry’s whales. While Zhang indicates that he will target altcoins with his new fund, he warns investors against projects that “directly issue tokens.” Although this warning does not cover a clear token name, crypto projects entering the sector by doing airdrops seem to fall under this scope.
Numerous projects have entered the sector through airdrops, and similar expectations are prevalent in significant upcoming projects like Starknet, Layerzero, and Worldcoin.
