Cryptovest Exclusive: BTC.Com Gives Insight into Bitcoin and ICO Markets

In an exclusive interview, Cryptovest’s Nikita Sachdev spoke to Toby, a developer from BTC.com, on his views about Bitcoin manipulation, what ICOs need to improve on and what’s motivating investors right now in this industry.

Market Manipulation

In light of the recent media attention around Bitcoin’s price, new evidence provided by a Texas University finance professor and ongoing federal investigations by the U.S Commodities Futures Trading Commission (CFTC), the subject of market manipulation is а highly relevant and contentious topic circulating the crypto space right now.

When asked what his view on this matter was, the BTC.com developer contended that 

“I think it justs a general market cycle...It’s easy to see a repetitive pattern”

Going on to assert that he believes Bitcoin’s price is not necessarily subject to manipulation but constant “boom and bust cycles”  instead.

This has been a popular contrary opinion to the Bitcoin price conspiracy, with eToro Senior Market Analyst, Mati Greenspan, recently expressing the same belief in an interview last month.

2 Things ICOs Need To Work On

The ever-growing Initial Coin Offering (ICO) market is invariably one of the most widely debated topics in the global crypto industry. Not only have international regulatory agencies worked tirelessly over the last year to address this particular unregulated area of virtual currencies, but we have also seen a rise in intelligent ICO scams as well as ‘zombie projects’ that fail to deliver any significant product or service.

As a result of these factors, the community has become totally polarised on ICOs and whether they are detrimental or not to the development of this emerging financial technology.

When asked what areas should new ICOs improve and develop on, Toby offered 2 statements on the matter.

(1) “Don’t scam people”

(2) “Have a product first and then try and get the millions… Many ICOs I see are just a website and a countdown, and a Bitcoin and Ethereum address where I can send my money”

While the first statement has been largely echoed throughout the ICO space, as industry professional like Toby understand the need to protect investor confidence in this area, not too many individuals talk about ICOs needing to focus more on their products as opposed to primarily sourcing capital.

All too often in the ICO space we see investors pouring money into purely speculative projects that offer absolutely zero working products or services. In order to develop this particular space he asserts that blockchain startups should concern themselves more with producing actual Minimal Viable Products (MVPs) to offer investors a more secure and less-speculative opportunity to make a return on their initial investments.

Technology Vs Return On Investment

This takes us to Nikita’s final question which asked Toby, are investors in ICOs only concerned with making fast returns, or does he believe that they have a genuine interest in the technology?

In response to this question the BTC.com developer accepted that while it was a matter of perspective, the promise of lucrative returns plays a significant role in attracting investment, particularly when tokens are offered at wholesale prices.

“I think it’s more attractive to people to buy something that’s worth a couple cents than buying this huge thing that’s Bitcoin, that’s worth a thousand”

He also went on to include that education will be an important step in helping investors make the right decisions when it comes to making returns on their investments.

“Step 1 could be educating people that you can own a fraction of a Bitcoin”

Here he elaborated that new investors need to be aware that they can purchase small amounts of BTC without owning an entire Bitcoin, and don’t need to necessarily invest their money in risky, speculative Initial Coin Offerings.

“If someone has no exposure whatsoever, then I recommend getting Bitcoin as a conservative choice, and not this ‘token’ that launched yesterday.”

Interestingly here, Toby almost advises against ICOs in favor of Bitcoin, as a much safer investment for someone entering the market. This makes a lot of sense in some ways as Bitcoin already offers great liquidity, is the leading market force in the crypto world and has a fully functioning product that is widely invested in.