The new York hedge Fund Tetras Capital published its bearish thesis on Ethereum, which predicted a future decline in prices of cryptocurrencies. While bitcoin has the most potential, says the company.
It is clear that no one investment Fund can not command the market and to short a separate asset. But posting a bearish call, he can attract the attention of other traders and try to convince them of his position. At a certain share of this success can be enough to make a pessimistic prediction a reality.
«The recent decline in the price of ETH implies that speculation, which led it to new heights over the past year, exhausted. Like the ETH have benefited from irrational exuberance, it inevitably will suffer further, with the growth of the market.
We believe that the current price of ETH is still too high and still well separated from the current and the next technological state of Ethereum. Our research led us to the view that the market and technology is still too immature to satisfy the current market price. This emerging asset class has soared due to speculative views, and we believe that the current market is underdeveloped in order to properly assess the risks or General economic problems,» – says the publication Fund.
The company believes that Ethereum does not have the same critical characteristics that are required for a leading storage cost. Therefore, it is unlikely to ever be able to get around bitcoin, not to mention the other dominant on a world scale assets such as the greenback and gold.
Calling to take a bearish position on Ethereum, the hedge Fund opposes the optimistic predictions of supporters of the ETH, such as Coinbase CEO Brian Armstrong (Brian Armstrong). However, recently even acne Buterin was forced to admit that Ethereum has problems, when noted, because of spam in the network of gas spent about $15 million, which led to increased commissions.
«We believe that the coming months will be extremely revealing about the future of Ethereum. The load on the network to use (DApp), competition (alternative DApp platforms) and regulation (ICO) will test the speculative hype and price ETH», – concluded Capital Tetras.
With 42 full-page version of the report the sub-Fund can be found here.
At the time of publication of news weighted average rate of ETH, according to CoinMarketCap, was $499,47. During the day, the cryptocurrency has grown by 5.44%.