Looking back on Crypto in 2018

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Simon Taylor Co-founder 11:FS & CPO 11:FS Foundry
5min read

Should I sell my cryptocurrency? Is all hope lost? Will Bitcoin die?

If you were fast asleep, and then suddenly your bed accelerated at high speed, before going upside down and doing loops. You'd be pretty shocked, right? I mean, my dreams can be pretty out there at times but I mean like your actual bed moving like a rollercoaster.

See the thing is when something is unexpectedly volatile, it's scary and it takes a hot minute to figure out WTF is going on.

2018: it was the best of times, it was the blurst of times*

(*Hat tip to Will for the Simpsons reference)

2018 has been nothing short of a bloodbath in crypto markets. Bitcoin is more than 80% down from its all-time high. ICO's have gone to the wall, and the regulators have started to take action against those that have broken the law, scammers and ICO issuers.

People lost their shirt, and I've no doubt there's many still in distress. There are plenty of businesses that were not running lean operations now struggling, and the leaner ones are very concerned. For retail investors (you and me) hopefully, they haven't been too impacted.

But as I say in every blog post about crypto, always do your own research, and never invest anything you can't afford to lose. Get professional advice, and I'm not a qualified advisor! The reason I say that is precisely because...well, look.

So, what happens next. Will we see an amazing comeback? Let's look at 2018 predictions before we get to 2019...

My 2018 predictions

1) Prediction 1: “Web 3.0” projects will gain traction

I'm gonna say that wasn't far out - in the sense that, people have focussed much more on the technology. Certainly, Ethereum seems ready to make the switch to Casper, EOS has become a mainstay having launched, as has Tezos. Increasingly, the focus on things like ZK-STARKSz, IPFS and new forms of messaging show the technology is back in focus since the price noise has died away.

2) Prediction 2: Institutions will need the knowledge and infrastructure to safely invest in and manage crypto assets

Again, not a bad assessment. In 2018 we saw custody solutions come to market from Ledger, Metaco, Coinbase and many more. The sophistication of the traders still in the market has increased and they demand something far more institutional grade.

3) Prediction 3: ICOs will get smaller and more legitimate

Bullseye. STO's are now what everyone is talking about, 98% or so of ICO's have almost zero trading volume.

4) Prediction 4: The first “pump-and-dump” ring will be arrested as organised crime

Hmm. I went too specific on this one. We're seeing arrests for scammers, we're seeing much more enforcement of securities laws. So if you read this as the regulator is coming, then, yes.

5) Prediction 5: 2018 is the year crypto has to grow up

This one was less of a prediction and more of a plea. A plea that I think may have been lost in the wind. Although the upside is crypto twitter is now a much nicer place to be. The crypto community has re-focussed on building and away from price and that's a very good thing.

OK, you've waited long enough for the main event., but you’re going to have to wait just a little longer. Next week you’ll get my 2019 predictions.