In an interview with CNBC, Gary Gensler emphasized that most altcoins do not have a serious economic base, and their courses are growing simply on market expectations. Therefore, the risk of their significant fall is high.
“Each financial asset is traded on the basis of fundamental factors, as well as market moods. But in the field of cryptocurrencies 99% of assets, or even all 100%, are traded simply in the wake of market expectations. And if Bitcoin can remain in the market for a very long time, because 7 billion people know about it, then less people know about 10,000 other tokens, ”the former chairman of the Sec.
He noted that first of all, you need to think about fundamental factors, and the vast majority of tokens and altcoins do not have an economic base. He emphasized that although there are about 10 precious metals on the market, most are only interested in gold and, perhaps, silver. So in the cryptocurrency market – people are interesting to BTC and a couple of the largest altcoins.
This is not the first such statement of Gary Gensler. At the beginning of the year, he already expressed the opinion that most cryptocurrency projects will not live for a long time.
Source: Bits
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