Arthur Cheong, a veteran voice in cryptocurrency investing and CEO of DeFiance Capital, shares an optimistic outlook for the future of digital assets. In recent statements on the social media platform

According to Cheong, “Distinctive opinion: It is entirely possible that the cryptocurrency market is maturing and we will not see complex wild swings with a 70-80% drawdown every two years, but instead complex secular growth like the S&P 500 passed after 2008 GFC (Great Financial Crisis).”

He highlights that, except for the crash caused by the Covid-19 pandemic in 2020, the US stock market has demonstrated remarkable stability, with rising returns primarily focused on large and mega caps, while value and small caps have been undervalued. Cheong believes that if this trend comes to fruition in the world of cryptocurrencies, future bull markets will not benefit all assets equally. This means that “most altcoins will not witness massive rallies similar to those seen in previous cycles.”

He adds that to succeed, altcoins will have to forge their own paths. “Also, you cannot ignore the fact that the market depends on the path, there is no pre-ordained thing. If mass adoption happens, like if Telegram onboards half of its user base to TON, how much do you think TON will be worth?”

While reflecting on the current value of Bitcoin (BTC) and Ethereum (ETH), Cheong argues that both are undervalued, considering they are the only two digital assets that have a clear regulatory status, which attracts TradFi demand.


The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.


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