The CEO of the JPMorgan's blockchain unit, Umar Farooq says except for a few dozen tokens, other cryptos are likely to disappear. He expressed this opinion during the Monetary Authority of Singapore’s Green Shoots seminar on Monday.
According to Farooq, the use cases of digital assets haven't arisen completely and the regulation hasn't been formed yet. The executive added that the majority of the capital in Web3 projects is for speculative activities and that the financial sector has been slow in keeping up with tokenized deposits.
Farooq concluded that regulations need to clarify risks involved in large transactions in tokenized deposits.Earlier, the bank's Chief Global Strategist David Kelly commented on the current financial markets and the Fed policy.
Kelly recommended to forget about short-term direction and focus on valuations. According to him, steering clear of large cap tech stocks and bitcoin and selling crypto is a better decision currently.