The main players of the financial market, such as Goldman Sachs, are finally starting to understand what the venture capitalists have long understood - cryptocurrency deserve the attention.
Several months ago clients of hedge funds Goldman appealed to the bank with the request to analyze the investment in bitcoin. In July, chief technical analyst Sheba Jafari accurately predicted that the price of bitcoin would drop to about $ 1,850 before setting a new record. According to her forecasts, the new price bracket will be set at $ 3900.
Now Goldman Sachs engaged in advising institutional investors, in order to more fully assess the phenomenon of crypto currency. In a note distributed this week, Goldman analyst Robert D. Boruyerdi said that since the total volume of the crypto-currency market has reached record levels, the possibility of investing in this area can no longer be ignored:.
With a total capitalization of almost $ 120 billion, it becomes increasingly difficult for institutional investors to ignore crypto-currency markets.
Team Goldman Sachs notes that investments made through the ICO, the total amount of which is approaching $ 2 billion only in 2017, exceeded the financing of angel investors in the last few months.
Many financiers leave traditional jobs to join various ICO projects, because they see in them a real gold mine. Boruyerdi believes, despite the opinion of many skeptics, crypto-currencies are a place where even now "dollars are working".
Regardless of whether you believe in the value of investments in crypto currency or not, it is here that money starts to work really, especially in the light of the growing popularity of ICO, which already successfully compete with traditional investment mechanisms in the early stages.
One of the obstacles faced by institutional investors is the uncertainty in the legal field. Until recently, the ICO was largely unregulated. The US Securities and Exchange Commission (SEC) recently issued a decree stating that certain ICO tokens are "securities" and therefore subject to federal securities laws.
It is unclear how soon and to what extent the SEC will begin applying securities laws, but Adam Draper of Boost VC advised developers to avoid using terms such as "DAO" and "ICO", because their use actually guarantees the attention of the SEC.
Other countries are also starting to look more closely at the ICO. The adviser to the Chinese National Bank recently said that the ICO needs moderate regulation. And last week, the Monetary Authority of Singapore (MAS) announced that it is beginning to regulate the ICO.