Institutions Remain ‘Locked Out’ Until Altcoin Becomes Major Pair
This is a segment from the Empire newsletter.
Altcoin Opportunities for Retail Investors
Amberdata’s Greg Magadini suggests that altcoins currently present retail investors with potential profitability, despite inherent market risks.
Magadini highlights that altcoins offer a more equitable investment landscape compared to traditional stock markets. In typical public offerings, retail investors enter last after venture capitalists and various funding rounds. In contrast, crypto allows retail investors to engage early via platforms like Discord, often gaining an information advantage.
This creates opportunities for small players to invest at the forefront of value creation. However, he warns that volatility is significant, and the lack of regulation increases the risk of scams, leaving investors largely to navigate on their own.
Magadini identifies bitcoin as the least volatile asset in crypto, serving as a major market that attracts most institutional exposure. This scenario may lead to a rotation where bitcoin could increase by 2x while altcoins might rise by 10x.
Despite institutional interest in bitcoin and ether, Magadini believes institutions remain "locked out" until a prominent altcoin emerges as a key trading pair.