Wall Street Reportedly Pulls Out of its Crypto Projects Following the 2018 Plunge

To say that cryptocurrencies have had a rough year would be an understatement. Bitcoin went from trading at nearly $20,000 in late 2017 to around $4,000 in a year. Other major platforms such as Ethereum, Bitcoin Cash etc. have suffered a similar fate during this time.

Hardcore crypto fans blame foul play by large entities that held too large a share of tokens of single cryptocurrency. Naysayers claim it has always been the inevitable fate of crypto assets. Regardless of the reasons for their downfall, cryptocurrencies lost a staggering $700 billion from their value, which is perhaps why Wall Street is more hesitant than ever to bet on the future of crypto assets.

Goldman Sachs Group Inc. sought to position itself as the leading company that was invested in the future of crypto and digital assets. According to a report by Bloomberg, progress has been incredibly slow. Industry gurus are terming the expectations risen from the hype of cryptocurrencies last year ‘unrealistic.’ Goldman is still the focus of many for the commitments they made so boldly last year, in spite of the various reports indicating that the banking giant is neglecting its crypto endeavors (at least presently). It was even preparing a trading desk and the bank had provided its bankers to the New York Times for interviews about its plans, Bloomberg reports. The firm also invested in BitGo Holdings Inc.

The main problem seems to be regulations by the authorities that are making investments in crypto extremely risky and unpredictable. “The market had unrealistic expectations that Goldman or any of its peers could suddenly start a Bitcoin trading business,” said Daniel H. Gallancy, chief executive officer of New York-based SolidX Partners.

In addition, Citigroup Inc. has not traded any of the products it designed for cryptocurrencies. In London, Barclays Plc, which was working to figure out public opinion regarding a cryptocurrency trading desk has made no progress either and they currently have no plans for a crypto trading desk.

Eugene Ng is a former Deutsche Bank AG trader in Singapore. He was quoted by Bloomberg saying, “It appears as if progress is coming to a halt, yet nothing could be further from the truth… The bear market is going to allow many of these institutions to build the proper foundations without rushing to build-out infrastructure without adequate testing for fear of missing out on a gold rush.”

Regardless of cryptocurrencies’ past, there is an undeniable potential in their abilities. The benefits of crowd funding, transparency, security, and unique identity are too good to pass up on. Experts agree that even if cryptocurrencies fail, of which there are no signs, blockchain technology will find another home in a mainstream adaptation by established organizations. Distributed ledger will continue to live on regardless of what fate cryptocurrencies face.