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Crypto entrepreneurs airing their disputes on Twitter are contributing to the loss of confidence in their asset class, which has manifested in its “lacklustre” performance, according to wealth manager Julius Baer.
Carsten Menke, Head of Next Generation Research, Julius Baer, said the crypto markets had been “unusually muted” during the festive season, with prices of Bitcoin and Ethereum remaining within their recent ranges, keeping total market capitalisation at $800 billion.
In a statement to the media, Menke said two crypto entrepreneurs “fighting a feud over locked funds on Twitter” had further shattered the confidence of investors.
Over the past few days, accusations have flown back and forth on Twitter between executives from crypto currency exchange Gemini and crypto lender Genesis, which was hit hard by the collapse of FTX. News broke yesterday that Genesis is to lay of 30% of its workforce.
Menke nevertheless concluded that, with the collapse of FTX apparently been left behind and both Bitcoin and Ethereum dropping back from the lows after it happened, unless another chapter is added to this crisis or there are renewed headwinds in relation to US dollar and US interest rates, cryptos have left the worst behind.
However, he highlighted the use of Twitter in the crypto space: “We have already commented on the extensive use of Twitter as the primary medium of exchange in the crypto space, which we see as a sign of the nascency of the industry.
“Proving this point, a feud between two crypto entrepreneurs over $900 million in locked crypto assets related to the collapse of FTX has been fought on Twitter during the past few days.
“Certainly, such behaviour does not restore the much-needed confidence in cryptos. To the contrary, the more feuds are fought in the public space and the more investors involved do not know what is wrong or what is right, the more confidence will be lost.”
(Reporting by Imogen Lillywhite; editing by Seban Scaria )
