The crypto-market is expanding with rapid pace and many institutions are ready to invest in this sector. The management of crypto-funds is a difficult task due to competition and pressure on fees. The report by PWC and ELWood Assets Management elaborated some deep issues regarding market manipulation and crypto-funds.
Despite the pressure of competition and the task of management of funds, there is a great demand for crypto-funds. There is a major problem of crypto fee fund which is not fixed and is constantly declining. However, there is also a wide range of positive aspects as well.
The bright side is that with the more number of crypto assets the transactions can be carried out easily and also the expression of user can be easily evaluated that helps in understanding the user’ interest. The number of buyers will be increased. However, the chances of market manipulation will also increase.
The counterparties at any time can manipulate the market and push the funds up in order to get their own interest. The investors could curb this manipulation by ensuring that the funds they return should not be involved in this kind of activity.
The regulations would be strengthened just like the regulations in the traditional finance sector. The watchdog committees should play a vital role in this regard. The traditional system also suffered badly in 2008 because of asset holdings without any sound management after that they make profound changes in the system and make it secure. The crypto-market should follow all the necessary steps to streamline their crypto funds and lending mechanism.