According to recent remarks made by a JP Morgan bank employee, the majority of cryptocurrencies and crypto assets that are now accessible are “junk.”
During a panel yesterday at the Monetary Authority of Singapore’s Green Shoots seminar, Umar Farooq, the head of JPMorgan’s (NYSE:JPM) digital assets unit, did in fact make the assertion that the majority of crypto assets on the market are based on the wind and that the true use cases for crypto assets have not yet materialized.
Farooq asserts that the lack of perfect industry regulation keeps many conventional financial institutions from investing in cryptocurrencies.
With the exception of, say, a few dozen tokens, everything else that has been stated is either noise or, honestly, is just going away, he claimed. “Most cryptocurrencies are still rubbish basically,” he added. Note that among the dozen “excellent” cryptos highlighted by Farooq are Bitcoin and Ethereum, if we are to believe the recent publications of the JP Morgan bank.
As a result, according to Farooq, “use cases haven’t really emerged, and regulation hasn’t kept up, and I think that’s why you see the financial industry, in general, being a little slow to catch up.”
According to him, the business is still in its infancy and cryptos are primarily utilized as a means of wild speculation rather than being widely employed in high-value transactions between financial institutions.
“All of these must develop before you can use them to do anything. The majority of the funds employed in Web3 today, in the existing infrastructure, are intended for speculative investments, therefore we’re just not there yet “He said.