Many crypto funds still short Ethereum, despite its tremendous decline from January heights
Tetras Capital, Hidden Hand and Neural Capital, all these funds, managing millions of dollars in crypto assets, believe that Ethereum is overvalued and will continue to drop.
What is the best way to lose everything in crypto? Short the bull market! Nobody can be sure where the market goes next, but recently it has started to show signs of life. Being so volatile, it can shoot up very fast, when all investors would feel confident that Bitcoin won't fall any further. And if Bitcoin rises, the whole cryptomarket rises to, seeing an injection of new money. There can't be such a situation, as 'the market grows, but ETH doesn't'.
On the other hand, okay, Ethereum is overvalued, but what isn't overvalued in this case then? Tron? Cardano? EOS? Ripple? At least Ethereum still keeps its position of number one platform for creating DAPPs. Maybe it's not so fast. But the majority of projects in crypto space is developed on Ethereum, and it has the most global community of developers. It's hard to say that it's overvalued based only on its scalability. There must be many metrics taken into consideration, and scalability is only one of them. ETH isn't worse than all other cryptos, and it's likely it will grow with the rest of the market.
Summarizing it all, investment is always risky, and investments with such a policy look even riskier. Investors should think twice about where and how much they invest making their own analysis.
DISCLAIMER: all the articles are based on personal opinions of their authors and shouldn't be considered as investment recommendations. Finrazor.com neither supports nor opposes any project or strategy, users must consider all relevant risk factors including their own personal financial situation.