Coinage CEO Chad Pankewitz has questioned why the cryptocurrency market is so reliant on Bitcoin, and how moving away from the coin could ensure the industry’s future.
He told VentureBeat: “From a long-term perspective, we want to take a stand, and the first steps toward moving the market away from being tied to Bitcoin… There are thousands of projects in cryptocurrency – distributed apps, blockchain use cases, and smart contract platforms across every industry vertical.
“Each has their own project, company, team, utility, levels of funding, traction, community, and business model. We believe these companies’ valuations should not be tied to Bitcoin and should be valued on their individual merits, much like a traditional stock market.”
For many, especially those outside of the sector, Bitcoin has become synonymous with cryptocurrency and blockchain more widely, but Pankewitz argues that investors stand to benefit from another coin taking the crypto crown.
“When trading and investing, it is much easier to understand numbers in dollar terms versus Bitcoin terms,” he continued. “It is crazy that we are made to figure out these difficult decimal numbers, such as BTC 0.0014758, when trading. We want to bring simplicity back to trading crypto.
“By having one stable side to the trading pair, it allows the exchange to manage risk better and offer custoemrs more advanced products, margin trading on alt-coins, short selling, and – in the future – derivatives on a wider range of assets.”