Bitcoin [BTC] exchange player XBT had suspended launch of crypto basket after lacking knowledge about BCH hard fork, admits CEO

The Swedish Bitcoin [BTC] exchange operator XBT provider AB had revealed that they were planning to launch an ETP or exchange-traded product based on crypto basket last year. The launch was pulled out after they learned of the BCH split that resulted in the development of the Bitcoin Satoshi Vision [BSV].

Bloomberg reported that XBT CEO Laurent Kssis admitted of having “no clue” of the Bitcoin Cash [BCH] hard fork. The Swedish agency of financial supervisory authority also ratified for the process. Kssis was oblivious about Bitcoin SV that was launched during the fourth quarter of the 2018 financial year.

Citing the need for an assessment before the implementation of ETP, the CEO stated:

“It’s important to ask how the community is responding to the split and who’s going to support one asset versus the other. If we get it wrong, these assets will drop and if they’re part of the basket we can’t go back because it’s in the final term-sheet.”

The Swedish honcho revealed to Bloomberg that the company intends on studying how the crypto space rolls out before playing its cards in launching the crypto basket.

Bloomberg strategist, Mike McGlone, talking about hard forks in the space, said:

“Hard forks are indicative of some of the primary issues in cryptos pressuring prices.”

McGlone made a notable point in terms of how the investors from the non-crypto background perceive this ever-fluctuating space of virtual assets. He further stated:

“The overall issue is rapidly increasing crypto supply and negative signals for potential institutional investors of how still nascent the market is.”

The number of Initial Coin Offerings [ICO] has now declined in 2019. As per a report published by Icobench, the average funds raised during the past two weeks dwindled below $5 million. The Bloomberg report further suggested that miner profitability has significantly gone down.

The cryptocurrency market has failed to recover from the massive bust. Mainstream adoption has not been achieved as expected. Litecoin Foundation recently tweeted on its Twitter handle:

“It’s estimated that 99.58% of the world does not own #cryptocurrencies yet.”

The high volatility of this space is sometimes incomprehensible for institutional investors. This drives them into believing that the market sphere is not worth investing. In most of the cases, the scalable aspects of digital assets take a back seat, with criticisms surrounding forks dominating the digital space.

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Chayanika holds a Journalism degree and is currently working with AMBCrypto. She is inquisitive about everything that the Blockchain Technology has to offer.


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