Perhaps you will be surprised by the title of this topic, as we have always assumed that the participation of large institutions in the crypto market will have positive effects because:
+ Crypto is advertised and became popular with the community;
+ Value of crypto accepted;
+ The increase in buying pressure causes token prices to be pushed up.
However, everything is not just pink. I realize that besides such advantages, the participation of financial institutions creates a number of risks as follows:
+Financial institutions are likely to use crypto in the art of accounting like Tesla did with BTC. Crypto will become a tool to manipulate financial reporting metrics rather than an investment;
+Financial institutions have bought a lot of crypto and they will sell a lot of crypto: this happens when financial institutions want to take profits or offset losses. This sell-off will create a huge drop as ICO projects sold out huge amounts of BTC & ETH in 2018 after successful funding. Financial institutions are not the place to burn tokens ^^
What do you think about this? Will the participation of financial institutions have a positive or negative impact on the crypto market in long term?
Investors are asked to understand the risks of cryptocurrency before investing, then they must also be careful when investing in cryptocurrency, which has recently become an alternative investment and financial transaction in the world. This is also a warning to businesses in the cryptocurrency sector to better comply with legal provisions and manage investment risks, so as not to violate the law and harm consumers.