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Three Arrows Capital CEO Tells Crypto Newbie Not To Buy Cardano – Here’s Why


Source: Daily Hodle

Three Arrows Capital chief Su Zhu is advising crypto newbies to stay away from smart contract platform Cardano (ADA).

In a discussion on UpOnly, Su says that when his neighbor asked him about investing in Cardano, he told him to keep his distance and look elsewhere.

“One of my neighbors a few weeks ago, he was asking about Cardano and I just told him to stay away. I told him to stay away and I gave him a list of proper assets and he thinks I’m an idiot.”

The hedge fund manager foresees a wild ride of volatility in altcoins this bull cycle that will likely end up shaking out non-experienced crypto traders despite the drawdowns not even being as big as many predicted.

“With that said, the cycle is such that like the first wave has to get really good and make a lot of money and then everyone thinks that the real FOMO (fear of missing out) has to come from those people getting hilariously rich when they buy the asset that you don’t buy. From that point of view, it’s almost like very early…

I think on the path there, you’re going to have some pretty heavy drawdowns, especially with the leverage in the system, but I think if you zoom out, actually in general, the drawdowns have been far less than people have thought they would be throughout the cycle especially even on altcoins.”

Looking at the decentralized finance (DeFi) space, Su says DeFi-based altcoins have largely been trading in a range as of late. However, he believes that institutional money has been eyeing up the space. Once their capital enters the DeFi markets, those assets will reach their potential, according to the Three Arrows Capital CEO.

“It’s definitely true that DeFi has relatively underperformed since the recent wave of euphoria, but I think it’s also because people remember the older coins they bought and they look at the price and it’s still below all-time highs and they still fall for the same unit bias, and a lot of the DeFi coins aren’t even listed on some of the exchanges yet. But I actually think that’s temporary because I think that the institutional money – that’s coming. They actually very much get the DeFi thesis and they also get the amount of activity that’s happening and so I think that its time will come… Eventually, the money ball comes around.”

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The post Three Arrows Capital CEO Tells Crypto Newbie Not To Buy Cardano – Here’s Why appeared first on The Daily Hodl.

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Author: Daily Hodl Staff