A Sky News report shows the dramatic implications of the depressive sentiment in the post-hype cryptocurrency markets. Although the report focuses on the situation in the UK, it certainly applies to other markets and countries as well. The Sky News Report has captured the ongoing crypto depression on the basis of data on company start-ups and liquidations. It also reports on investors who bought cryptocurrencies with loans on their houses in the course of the 2017 hype and are no longer able to service them. The situation is similar in every detail to the collapse of the Internet hype between 2001 and 2003. There is nothing new under the sun.
Analyzing data from Companies House and OpenCorporates, Sky News has revealed that at least 340 companies related to cryptocurrencies or blockchain were dissolved or liquidated this year, compared to 139 in the previous year. More than 200 of those companies were incorporated with the Companies House during 2017 when the value of Bitcoin surged 1,500% through to its peak in December. For the first time, the number of newly-registered companies is growing more slowly than the number of dissolved businesses. This actually demonstrates the depressive cryptocurrency sentiment in the startup scene.
FinTelegram’s research team is convinced that the depressed market sentiment will continue well into 2019 if not 2020. The many scams and shit coins have to be digested by the markets. The financial market supervisory and investigative authorities will be concerned with the many crypto fraud cases for the years to come. Before a new bull cycle can emerge, the individual jurisdictions will need to establish appropriate regulatory frameworks for digital assets.
