False logic? Coinbase has published its outlook for the crypto markets in 2023. The company is not kind to altcoins, whose quality would not come close to that ofEthereum (ETh). What credit should the crypto community give to such a strong opinion?
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Coinbase: pretty gloomy predictions for altcoins
Coinbase valued that investors, “affected by the 2022 deleveraging”, will be less likely to accumulate altcoins in 2023. According to the crypto exchange, this drive to accumulate altcoins will only recover after several months.
To support this prediction, the company points to the fact that more recent crypto projects have loaned their cryptocurrencies to market makers, who have used FTX as a pool of liquidity.
Now, these projects must then wait for the end of FTX’s bankruptcy proceedings to be able to recover these altcoins blocked in the crypto exchange. On paper, they might thus be unable to access a significant amount of their native cryptocurrencies for several years.
For Coinbase, such a situation could then have negative impacts “on the loyalty of developers and the development of future applications”, or in other words, on the development of these recent projects that issue altcoins.
Are these Coinbase forecasts based on sufficiently solid foundations, to be able to be qualified as founded? The crypto stock market does not take into account the emerging and particularly dynamic nature of the cryptocurrency sector.
Currently, the only certainty is that this characteristic of the crypto industry complicates the development of any forecastsand may even tend to invalidate perspectives that follow a relatively linear logic, as well as those that rely on data from the past to predict the future.
Crypto companies are releasing their crystal ball at the end of the year, but forecasts for the year 2023 should always be taken with a grain of salt. Some crypto players suggest that cryptocurrencies have seen worse than these bear markets, thus suggesting a possible recovery soon, while others therefore issue pessimistic prospects for the youngest projects.
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