QuadrigaCX’s Views On Institutional Crypto Investment
It cannot be denied that the economic growth is slowing and trade tensions are starting to get tense. Considering all of these, it is safe to say that there is every reason for an institutional investor to worry about.
The Death of a CEO
Apparently, though, none of the aforementioned worries are on the top-of-mind for many institutional investors. This is very true when it comes to their cryptocurrency investments. Along with many of the blockchain industry, they are more occupied in the drama unfolding around the demise of the CEO of Canadian digital currency exchange.
The executive in question is none other than the CEO of QuadrigaCX, a beleaguered Canadian cryptocurrency exchange. Unfortunately, the company has already been suffering from issues pertaining to frozen accounts. Add to its agony is the recent passing of the said CEO in India in December of last year.
While there are many concerns pertaining to his death, many are engrossed to what he ultimately left behind. Basically, he was more than just the CEO of the company – he was the sole keeper of a password meant to access client funds. After his death, this password was nowhere to be found.
The Fundamental Truth
On the surface, one could say that it does not necessarily have something significant to do with institutional investors. After all, the exchange was already not geared towards rigorous checks and/or oversight. If anything, it is absolutely fate – including that of its client. In other words, it points to a fundamental truth about digital currency investing for institutions. Mind you, it is the type that does not only color allocation decisions, but it also shapes emerging infrastructure.
By essence, the cryptocurrency market is the only market out there right now where operational risk tends to be a lot greater when compared to the market risk. This, in particular, highlights both cryptocurrency investing’s opportunity and, sadly, weakness.
The Building Blocks
Everyone in the crypto space can agree that there is always positive news pertaining to the infrastructure development for institutional transactions. In most cases, it is either a listing or a launch. And regardless of whether it is a merger or partnership, the set of items often comes together in order to create an impression of what is constructive evolution.
Still, institutional investors are not fond of ambiguity, particular the ones that involve processes. If it is the other way around, perhaps only a few of them could really afford public embarrassment or fines.