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Why Cryptocurrency Trader Must Not Buy This Coin – 3 Arrows Capital Chief

Su Zhu,  thr Three Arrows Capital chief, has urged cryptocurrency traders  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 in light of the coin’s recent parabolic rises

“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 is far more focused on the emerging decentralized finance (DeFi) sector of the crypto crypto market. He foresees a wild ride of volatility in altcoins this bull cycle that will see many retail traders making initial investments in high market cap assets.

He says the volatility will likely end up shaking out non-experienced crypto traders, but notes that so far, this cycle’s drawdowns have not been as large 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 DeFi space, Su says DeFi-based altcoins have largely been trading in a range as of late. However, he says institutional money has been eyeing up the space. Once their capital enters the DeFi markets he believes those assets will begin to reach their potential.

“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.”

The Daily Hodl

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