Yoni Assia: In the long term, I’m a great believer of cryptocurrency

The hype of crypto space ended in late 2018. Since then bitcoin price struggles to recover and remains around $3500. It makes sense for people to lose faith in cryptocurrency, but Yoni Assia, CEO of eToro still believes the cryptocurrency during his interview with Coinsnetwork. 

Yoni Assia, CEO of eToro

“While the market is displaying signs of being in a bear market, in the long term, I’m a great believer of cryptocurrency, specifically in the entire thesis of behind these assets, namely decentralized, tokenisation assets. We believe that in time all investible assets will be tokenized and that we will see the greatest transfer of wealth ever as financial services move onto the blockchain,” says Assia.

From 2016 to 2019, eToro gained 600% business growth, and the company enjoyed the crypto maniac during 2017. When looking back at 2018, he addresses much less interest from the customer in cryptocurrency toward the end of the year. 

“So we see a lot of people who originally came to eToro to trade cryptocurrency actually trading stocks now on our platform, with stock trading now picking up in popularity versus cryptocurrency,” he says.

The crypto price downturn is also a telling sign of initial coin offering (ICO) market collapse. Last year, Autonomous Research found out only $300 million raised through ICO in September. With over $3 billion raised in January, the ICO activity clearly dropped 90% in the global.

Assia still believes in the concept of ICO and utility token, but he says the regulatory challenge, as one of the key drivers to the boom of 2017, which hurt the market significantly. Right now the market for ICO is resting, “It’s hard to say for sure whether we are going to see next bull run in 2019, or if, as some are saying in the market, that 2020 will be the next haven for cryptocurrencies,” he mentioned.

After the craze of ICO, we have security token offering (STO), and there are believers in replacing the former, as a new form of fundraising. Assia says STO is something structured as security, which is more regulated, responsibility and liability.

But different country have different security regulation, “so STO, we need to find a way create something that is globally, and that is a very challenging mission.” he says, and ICO can raise money from people of a lot of countries, so it still has a stance in the market.

Apart from utility token, Assia thinks security token is not proven yet, and tokenization of asset makes sense, so there is a place for it definitely. But as he stated, it is a very complexed regulatory environment, once you define tokens as securities. 

The price issue dominated the crypto market in the past. When coming in 2019, things may change literally. Assia express what he saw during the boom in ICO, with more than thousand of the different company is raised funds, so he thinks a significant product is going to launch in the year.

“It’s going to be an exciting year for blockchain, and we have lots of teams working in improving the depths for the application of decentralized technology, so I think there will be more focus in technology than the price in 2019. One example of this is the recent launch of GoodDollar project last year with the aim of reducing global wealth inequality, through blockchain technology.” he says.