As planned the previous year, XBT Provider AB could not launch the exchange-traded product based on a basket. The company’s CEO wants to examine the way in which the cryptocurrency community moves, prior to any action.
Kssis said that XBT “didn’t have a clue” when it got regulatory clearance from Swedish financial supervisory authority about the forks that had developed.
He further elaborated
It’s important to ask how the community is responding to the split and who’s going to support one asset versus the other. If we get it wrong, these assets will drop and if they’re part of the basket we can’t go back because it’s in the final term-sheet.
A fork originates when the blockchain that the cryptocurrency depends on, splits into one underlying and one dominant asset. Usually, this happens due to security upgrades or hacking, among other things. Quite often, it is possible to make a soft fork compatible with the older version but a hard fork cannot.
Mike McGlone who is a strategist at Bloomberg Intelligence said
Hard forks are indicative of some of the primary issues in cryptos pressuring prices. The overall issue is rapidly increasing crypto supply and negative signals for potential institutional investors of how still nascent the market is.
According to the data analysis from Coinmarketcap, cryptocurrencies continue to slide in 2019. After losing $500 billion in the market in the year 2018. Currently, the market capitalization is about 120 billion. Kssis said
Time alone is a test of the strength and the viability of the asset.