Crypto market cap to top $1 trillion this year, says Kraken CEO
The total market cap of the crypto market will top a trillion this year, according to Jesse Powell, CEO of major exchange site Kraken. He also said people should avoid trusting others and do their own research when investing in cryptocurrencies.
Speaking at the World Government Summit in Dubai and to CNBC, Powell said he believe the exponential growth we saw in 2017 would continue this year, citing the increasing number of ‘kids graduating from crypto programs at college now’ as a driving factor.
“I believe cryptocurrency is the people’s declaration of monetary independence,” said Nick Spanos, CEO of Blockchain Technologies Corporations, at the same summit.
At time of writing, the crypto market is worth just under $417 billion, according to CoinMarketCap. So, for Powell’s predictions to come true, the market would have to swell to more than double its current size in less than eleven months. Historically-speaking, this is by no means out of the question for the notoriously bullish, yet volatile, market.
Despite his confidence in the market, Powell urged users of his site, which CoinMarketCap rates as the world’s eighth largest exchange per market cap, to look after number one when it comes to investing. Kraken routinely handles around $300 million worth of trading a day.
“I think ultimately consumers need to look out for themselves”, he said.
“Look into the fundamentals and [don’t] rely on any particular exchange to protect them from market volatility”, he added.
Although Powell warned against blindly trusting an exchange and not properly researching coins, he also said that every virtual coin featured on the Kraken exchange was “almost certainly not a scam”.
On Monday, EU regulators branded cryptocurrencies bad investments, describing them as ‘highly risky’ assets. Debate continues over the credibility of cryptos.
Meanwhile, new tokens are launched on an almost daily basis with many raising millions in a matter of days or even hours, via ICOs (initial coin offerings).