An absence of funds that consist of cryptocurrencies has put individual investors in danger, blockchain industry-focused investment firm Hashed founder and CEO Simon Kim said Wednesday.
“I believe this current situation of not being able to establish a cryptocurrency fund despite its popularity and high transaction volume is abnormal and contributes to market distortion,” Kim said.
Kim added that the cryptocurrency market, whose transaction volume sometimes exceeds that of the country’s main bourse Kospi, has become undeniably huge, but individual investors still have to make investment decisions about numerous cryptocurrencies and blockchain projects on their own.
Some investors do not necessarily have a full grasp of the blockchain industry or certain cryptocurrencies, but nonetheless they could want to bet on the prospects of the fledgling industry, according to Kim. “That’s why the participation of institutional investors are needed. Institutional investors can do that job of selecting promising companies and industries on behalf of retail investors and help the market grow healthier,” Kim noted.
Establishing a fund consisting of virtual currencies is impossible in South Korea, as custodians do not accept cryptocurrencies as assets.
Kim shared his thoughts on the current status of the industry during a session titled “Blockchain scene in South Korea: The hype and reality” with Ground X CEO Jason Han at ComeUp, a government-led startup conference taking place from Wednesday to Friday.
Kim and Han discussed how South Korea, once a global leader in the blockchain industry, is now lagging behind the leading countries due to heavy regulations on the emerging sector.
“South Korea used to be at the center of the spotlight in the blockchain industry with top talents and interesting projects two or three years ago, Unfortunately, it is now difficult to call South Korea a market leader,” Kim said.
Reckless remarks from government officials poured…
