Avalanche CEO believes that large crypto investors can get “cosmic profits” in the future

Avalanche CEO John Woo is confident that the current situation in the crypto market against the background of its correlation with the stock market does not prevent investors in digital assets from hoping for “cosmic profits”. The CEO of the company believes that institutional investors are still eyeing the crypto industry.

Wu believes that the key principles of today’s market are strengthening, despite a significant decrease in its capitalization in 2021.

“The market needs to understand that in the crypto asset space, investors will receive more than the average return on the market, the so-called alpha (when investors receive more than the average return of an asset). There are very good reasons for this. The market capitalization of cryptocurrencies has fallen, but stablecoins have not. This suggests that many investors hold them and are ready to deploy stablecoins in the market,” the entrepreneur said.

In his opinion, the upcoming transition of Ethereum will be a prerequisite for generating significant profits, regardless of whether or not the prices of ETH and BTC will decrease due to the Nasdaq correlation.

“Regardless of the correlation and direction of the market, investors will reap cosmic returns. Personally, I think the winter will last a little longer, but what I’m really looking forward to is new applications. Protocols that literally redefine how a business will be built and run. What you can do when tokenization is in full swing is to code business logic into a smart contract — and the platform itself will become your business,” concluded John Woo.

And former stockbroker Jordan Belfort believes that small-cap digital currencies can be compared to so-called “penny” stocks — cheap assets of little-known projects. At one time, the former broker just carried out transactions with such shares. According to Belfort, such assets can bring great profits, but there is a risk of losing your money.

“If you make trades in low-cap crypto assets at the right time, you can make a lot of money. On the other hand, you always know that other people are in control. You understand that you will often be in the red. And I don’t think it’s possible to do any research to fully protect yourself from the collapse of small-cap coins. Unless you invest in them at a very early stage. It doesn’t matter how the project is managed — if the cryptocurrency grows, then people will start selling it,” said Belfort.