In a recent interview that Sun Biz had with crypto currency exchanger Coinhako’s co-funder, Yusho Liu expressed that the demand for cryptocurrencies still remains encouraging desite the fall in bitcoin’s prices since late 2017.
He also told Sun Biz that “”The buy side is still very robust. Generally, there have been more buyers than sellers over the years. The more people know about it, the more they will be interested in buying into the future. Liu added “Most of the people buy and hold. I don’t see many people buying and selling day in, day out”.
Last year, Bitcoin’s price saw a sharp drop of 66% from its peak of close to US$20,000. If one checks the exchange today, Bitcoin’s price is fluctuating at US$6,400 – US$6,700.
Liu said “After January, when things went down, there has been a slowdown in the cryptocurrency market. The volume has declined, but it has started to pick up again. In the long run, we’re still bullish (on cryptocurrencies).” He added that there has been more participation from the mainstream traders in the past six to nine months.
Coinhako was founded in Singapore in 2014. They exchange expanded into Malaysia in May 2016 and it looking to venture into two new upcoming such as Indonesia and Vietnam. By doing so, transactions could potentially increase from 5 to 10 times by the end of the year. As of last year, Coinhako had a customer base of 100,000 and had a transcation value of S$250 million. 20% of the company’s total transaction value were from Malaysia.
When asked about the future of Coinhako, Liu said that the company is looking at the stable coin, which is any cryptocurrency pegged to a stable asset, such as gold or fiat currency.
He told Sun Biz that “It’s not legal tender, but it’s up to them to see it as security, commodity or currency. At the moment, I don’t think there is no need for them to be the first mover (in classifying cryptocurrencies).”. He sees no urgency for the global central banks to classify cryptocurrencies.
According to the Malaysian Blockchain Regulatory Report, Bank Negara Malaysia and the Securities Commission Malaysia have been urged to work together to define and classify tokens and cryptocurrencies to provide more clarity to the market.
It is good to see that many countries are opening up to blockchain and cryptocurrencies. For example, how Indonesia just recently opened their first blockchain hub. It is an exciting time for Asia because what we do now will impact our position in the blockchain and crypto space for the future
Sources: Sun Biz, The Sun Daily