Do investors want to get rid of volatility in Crypto?

In the last two days, the New York Attorney General, Regulators from London, and Regulators from Abu Dhabi have all called for further regulation of crypto and standards in the industry. However, London and New York have one extra line that seems to be missing from Abu Dhabi, and I’m not sure if that one line is actually a good one. All three called for more strict regulations on ICOs to prevent crypto ICO frauds or scams and an increased standard of security on exchanges so coins do not get hacked and funds stolen. These two I fully agree with. However, the third line that New York and London want is for exchanges to somehow control the buying and selling so as to not to let market volatility get out of hand and to prevent the manipulation that is ever so present in the market. First, I’m actually not sure if the exchanges can do that as I believe most of the Bitcoin Manipulation is not coming from the buying and selling of Bitcoin but from coordinated Short-selling at places like Bitmex. But the main point is that I do not think many or even most of the investors in crypto want the volatility gone from the market. If people want safe and less volatile markets to invest in, there is always the stock market, the bond market, and things like ETFs and mutual funds. I think many people invest in crypto for the volatility and the chance to make big gains. Its the same reason people pick penny stocks and buy junk bonds. We know the reward is great, so we take the risk. Also, smaller cryptos allow common people the chance to invest directly in startups without all the red tape and without the “accredited investor” hurdle. Small investors would like to participate in high risk, high rewards IPOs as well but don’t meet the $500,000 requirement to be an “accredited investor” so never get the opportunity. If people, as investors, are willing to go through the trouble to sign up at various exchanges, for the chance to invest in these small-cap coins for big rewards, that should not be regulated away from us.
In short, clamp down on fraudalant ICO shells and demand security and insurance from the exchanges. As for price manipulation, just keep an eye on the big institutional players going crazy with the futures market and let people buy and sell as they want.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s