Cardano Founder Hints When Crypto Will Be Ready For Institutional Money

Cardano founder Charles Hoskinson says the current crypto ecosystem is not ready for institutional money to enter the space, and he thinks it will take another 12–24 months before it is, according to a report from Cryptonews.com, published on May 7.

Per the report, Hoskinson said:

“The really smart money is aware that the market is not yet stable and that it is just not at the level of maturity [yet] to support the institutional surge.”

Institutional Money will Bring Billions of Dollars to Crypto

Providing an example of the type of institutional money Hoskinson expects to enter the market in 1 to 2 years, he mentioned BlackRock, an American global investment management corporation with nearly $6 trillion in assets under management.

Hoskinson says if a firm of this size were to allocate just 0.5% of their portfolio in cryptocurrencies, it would bring billions of dollars into the crypto market. If this money were to enter now, it would have a significant effect, seeing as the crypto market cap at the time of writing is just over $185 billion.

Hoskinson holds that the crypto market needs to mature before it can stably handle such an influx of money.

What Does the Crypto Market Need for Institutional Money?

If billions of dollars from institutional money is to flow into the crypto market, a number of things must be established first.

First of all, it’s imperative that we set up clear and established regulations for cryptocurrencies and the markets. There is still too much uncertainty regarding crypto regulations, as there is no set framework on how to regulate this market.

While this may not be a problem for the average retail crypto investor, it is for institutions, as they only deal with established and regulated markets.

Another thing institutional money needs is crypto custodial solutions. These solutions are already being figured out, as Coinbase launched a custody service in July 2018 and Fidelity Digital assets launched their crypto custody solution this past March.

Do you think institutional money will only arrive in the crypto markets in 12–24 months from now? Let us know what you think in the comment section below.

3 Comments

  • Blaze Mason
    Posted May 9, 2019 11:29 am 0Likes

    I believe the crypto market does needd yo mature further to see large institutional money….but that doesnt mean that institutions arent already getting their toes wet.

  • Ira Biss
    Posted May 10, 2019 10:56 pm 0Likes

    I agree. Even some of the largest most popular cryptos have substantial design flaws….Charles knows this all too well, which was the driving factor behind the Cardano implementation.
    Cardano is paving the way for how sustainable crypto needs to be implemented. The code is peer-reviewed and mathematically proven to work!
    While this seemed to be a bit overkill at the start? The crypto that was quicker to market, soon found their way back to the drawing board to do their due diligence.

    The competitive nature of crypto was high from the start. It was considered to be more advantageous to get a get something “out there”, then it was to get it right!

    Cardano is slow? Like the Tortoise (Cardano) & Hare slow! (I don’t need to tell who wins that race!)

    • Ira Bliss
      Posted May 10, 2019 11:10 pm 0Likes

      I am ticked, I speed my last name wrong! I keep my name tag right on my monitor, so I have no good excuse for the misspelling, other than, I didn’t have my glasses on!
      Best Regards, IRA BLISS

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