The performance of blockchain technology so far has received various reactions and responses. While some favor the innovation brought by it, there are many who don’t find it useful. In between the debate about the pros and cons of the blockchain, prerequisites for mass adoption are often brought to light. One of the many influential prerequisites for mass adoption includes institutional investor.
BlockPublisher reached out to Ken Kavanaugh, the president of Altcoin.io, a white label provider of decentralized exchanges and OTC desk automation, for investigating the impact of institutional investors on mass adoption. While sharing his opinion on the mass adoption, Ken stated:
Any asset class, doesn’t matter if it’s crypto or something else, needs to meet a few criteria if it stands to reach mass adoption. For one, there needs to be profit potential. Secondly, there needs to be ample liquidity. If the first criteria doesn’t exist, then institutional investors won’t flock to the new asset class. But if the asset class shows promise, which I believe it does, then new institutional investors’ market entry will increase the liquidity of the asset class. This initiates the virtuous cycle of ‘liquidity begets liquidity’. We’re already in the process of mass adoption but waiting for that next inflection point. New institutional investors are the catalysts for this inflection point.
In the past, Ken was the co-founder of Moon Assist and advisor of Altcoin.io. Upon enquiring about institutional investors, Ken provided insights by saying:
Up to now, smaller hedge funds and family offices comprise the only real institutional investor participation. The larger institutional investors, such as prime brokers, asset management firms, pension funds, will be the main actors in reaching our next inflection point.
For blockchain to succeed, mass adoption becomes very significant aspect. There are many factors on which the possibility of mass adoption rests. But as Ken stated, institutional investors are one of the main actors and catalysts for helping blockchain to reach the next inflection point.
