IMF’s crypto warning is bad for some but opportunity for others

Cryptos have been in a downtrend, and there is no doubt in saying that the overall performance of cryptos in Q1 2022 was nowhere close enough to Q4 2021. A large part of that is chiefly because cryptos come back under the spotlight as a means of payment and bypass the sanctions. Investors have always had concerns about cryptos like Bitcoin and others, which are loosely regulated and not backed by anything. For investors, what makes more sense is if something is back with a real business and if they can own that business at an early stage. 

Cryptos like Bitcoin and Ethereum made their all-time high in Q4 of last year, and ever since, the price has been trending lower. Crypto started to feel even more intense selling pressure when Russia began its invasion of Ukraine. As a result of the war, the US and its allies announced several rounds of sanctions on Russia, and there are plenty more to come still as Russia continues its campaign in Ukraine. The reason that cryptos are under pressure is that they are not largely regulated by any government, and sanction countries or individuals can use them relatively easily to bypass sanctions. This particular factor has brought more spotlight on cryptos. 

Only yesterday, the IMF issued a fresh warning. The institute said that countries like Iran and Russia are using cryptos to bypass sanctions, and they are utilizing their energy sources to mine cryptos. Of course, the warning has made investors more nervous about this space. 

The reality is that investors like investments that are easy to understand and are fully regulated or at least have individuals running the companies who have worked in that environment—for instance, Unicoin. 

The start-up is a crypto project, but the people behind that are individuals whom people recognize. For instance, Rosie Rios, who is a part of the Unicoin team, was the 43rd Treasurer of the United States and is a Visiting Scholar at the Radcliffe Institute for Advanced Study at Harvard University. She has served as a US Treasurer twice and had her signature on the dollar bills printed during that duration. 

Another individual who is also part of the Unicoin team is Steve Wozniak, a co-founder of Apple—a company that everyone knows about because of its greatest revolutionary products. 

The key reason that investors like cryptos is because of substantial profit. But the reality is that investors make a large chunk of money when they invest in early-stage companies that have huge potential and are unicorns. 

Unicoin fits the bill in that regard. First of all, there is no mining, something which is attractive to those countries that have energy resources and are trying to bypass sanctions. Secondly, it is an equity-based business model which gives investors a stake in a Unicoin business at an early stage and entitles them to dividend payments when they become available. This is an environment which are they familiar with, like stocks. However, unlike stocks, Unicoin investors get a chance to invest in a Unicorn business at a very early stage. Thirdly, the fact that it is in the business of paying the dividend, Unicoin will be fully regulated. Being regulated means no threats from warnings like the IMF mentioned above. 

To conclude, the war in Ukraine has brought more spotlight on cryptos, and this is one of the reasons that we have not seen a rally in cryptos. Given the change in the regulatory framework, investors favor those investment opportunities that are not only fully regulated and have a familiar tone like paying dividend but gives them an opportunity to invest in a unicorn business in an early stage.