Transparency In The Cryptocurrency Ecosystem with James Giancotti

As the CEO of Oddup, James Giancotti looks at everything with a rating in mind. So, how does the man who rates startups for a living view the current state of cryptocurrency? It should come as no surprise that he looks at cryptocurrency like startups. “Ninety percent will fail and maybe 10% will get your money back, and then 2 or 3% will just be superstars,” Giancotti said. “Most of those cryptocurrencies that launched in the last 12 to 18 months, most of them are crap. I say this because, if I put my startup rating hat on, I go, ‘Wow, I’ve never seen any major startups come out of Slovakia or Slovenia, but they’ve raised $40 million—why?’ That said, the technology is a game-changer.” Despite the negative press, cryptocurrency is still an attractive asset class. Giancotti says many investors are putting 0.5 to 1% of their net worth in cryptocurrency, typically the top three: Bitcoin, Ether, and XRP. He doesn’t see that trend changing. “If you can put $50,000 in a startup or buy 10 BTC, you’ve probably got a better chance of getting some liquidity from BTC than you have with the startup,” Giancotti said. Giancotti also sees the market becoming more serious. Some of the brightest people he worked with at JP Morgan and Goldman Sachs have gone into blockchain funds.  Giancotti lays out a simple reason why: the future will be shaped by blockchain. These trends—and their customers’ demands—motivated the Oddup team to launch Alluva, a blockchain product that quantitatively and qualitatively rates cryptocurrencies, ICOs, and STOs by using a contributor-model that rewards users for correct calls. “Crypto is much different than the startup environment,” Giancotti explained. “Startups usually have 50 or fewer shareholders. There’s limited information. With Oddup, we have multiple analysts and data scientists
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