Crypto altcoins have ignored Bitcoin’s inability to rally over recent weeks. Take the chart below, which shows that BTC has strongly underperformed some of the leading cryptocurrencies since the start of June.
Bitcoin vs. altcoins (Chainlink, Cardano, Dogecoin, Ethereum) since the start of June. Chart from TradingView.com
With the recent outperformance of altcoins, a select group of traders is expecting an “altseason.” The head technical analyst at crypto research firm Blockfyre commented:
“There are people that don’t believe it’s #altseason. Look at $DOGE. Look at $BTC Dominance. 3 year trend broken + Macro LH and LL for the first time in 900+ Days. Look at retail on Robin Hood and Tik Tok. Get ready. 2017 rehash is on it’s way. More and more interest is coming.”
An altcoin season is when altcoins across the industry rally by hundreds of percent to strong outperform Bitcoin. The last such altseason was in 2017 and 2018, when BTC dominance fell as low as ~34%.
Changpeng “CZ” Zhao — the CEO of Binance — has suggested that the sentiment that all altcoins will rally may be too optimistic. And he’s not alone in touting that opinion.
Not All Crypto Assets Will “Pump,” Binance CEO Reminds Community
Multiple cryptocurrencies are in the midst of surging dozens of percent higher as of this article’s writing. It’s a list that includes Cardano, Dogecoin, Vechain, Icon, Cosmos, 0x, and more.
Not all altcoins will share this fate, though, says Changpeng Zhao. Responding to the frothy market conditions, the industry executive said on July 7th:
“Not all alts will pump during the next #altszn. If a project has been around for 3 years but not much to show for, then… A few that have consistently pushed development will thrive.”
Not all alts will pump during the next #altszn. If a project has been around for 3 years but not much to show for, then…
A few that have consistently pushed development will thrive.#BUIDL
— CZ Binance (@cz_binance) July 8, 2020
In a reply to his original tweet, Zhao remarked that 95% of projects are unlikely to sustain a pump during this upcoming cycle.
“More like 95%, crypto or not. Same number for internet / social / or even traditional industries,” the Binance CEO added.
CZ Isn’t Alone in Thinking So
Changpeng Zhao isn’t the first prominent executive and investor to suggest that a vast majority of cryptocurrencies are unlikely to perform well.
There are many other commentators that are coming out against a majority of altcoin projects.
Jason Calacanis, an angel investor in Robinhood and Uber, recently said that he thinks 99% of crypto projects have no merit. Calacanis’ comment was in reference to his opinion that most crypto founders have no vision or experience to be doing what they are doing and thus are doomed to fail.
His comment has been echoed by Kevin Rose, who said to TechCrunch in June:
“The problem is that 99% of the projects out there and a lot of the people who are behind them are just in this for the pure financial gain. And there’s a lot of garbage out there. And that’s unfortunate because it really drags down the high-quality projects, and it muddies the space quite a bit.”
Featured Image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
Binance CEO: 95% of Crypto Projects Are Unlikely to “Pump” This Cycle
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