Investing.com – Most of the cryptocurrencies and crypto assets available today are “junk,” according to recent comments from a JP Morgan bank official.
Umar Farooq, the head of digital assets unit at JPMorgan (NYSE:), indeed suggested during a panel discussion at the Monetary Authority of Singapore’s Green Shoots seminar yesterday that most cryptoassets in the market are based on wind and that the true use cases for cryptoassets have yet to fully unfold.
According to Farooq, regulation of the industry is not yet perfected, which prevents many traditional financial institutions from getting involved in cryptocurrencies.
“Most cryptocurrencies are still junk actually, I mean with the exception of I would say, a few dozen tokens, everything else that’s been mentioned is either noise or frankly, it’s just going to go away” a- he asserted. Note that if we are to believe the various publications of the bank JP Morgan in recent months, the and are part of the dozen “good” cryptos mentioned by Farooq.
“So in my mind the use cases haven’t fully emerged, and regulation hasn’t caught up and I think that’s why you see the financial industry, in general, being a bit slow to catch up,” added Farooq.
He added that the industry is not yet mature enough for cryptos to be widely used in high-value transactions between financial institutions, and is currently mostly serving as a vehicle for wild speculation.
“You need all of these things to mature so that you can actually do things with them. Right now we’re just not there yet, most of the money that’s used in Web3 today, in the current infrastructure, is intended for speculative investments” he explained.