The cryptocurrency industry is muddled in a web of financial and technical intricacies, bound together by the principled opposition to the centralized currency of the sovereign behemoths. Decentralized currency is the brainchild of a continuously developing technology-centric world, and, according to its adherents, the biggest risk to the cryptocurrency world emanates from the same.
According to a recent study by Binance Research based on a May 2019 poll presented to institutional and VIP clients of the cryptocurrency world, technology is the prime concern of the industry. On asked to rank the top 5 risks facing the cryptocurrency industry today, the respondents choose “Technology Failure,” arising due to the preponderance of a hack or a leakage to be the most critical.
The other prominent risk-related concerns within the digital asset space were, in order of their rank, the change in regulation, both domestic and international, legal issues pertaining to the top stablecoin, Tether [USDT], the growing debate around digital’s assets’ security connotation, subject to the Howey Test, and the staple privacy concerns.
Based on the average score of all the respondents, technology failure received a statistical rank of 1.67, the next three were between 2 and 3, with the concern about privacy, especially with the rise of privacy-centric coins like Monero [XMR], and Zcash [ZEC], not notching up to the other potential risks.
The report called the lack of elevated concern about Tether’s ongoing legal issues on its backing a “surprise.” Furthermore, the inner workings of the Bitfinex-iFinex-Tether matrix are also drawing considerable criticism from the larger community.
Binance Research also detailed the factors that could act as “potential drivers,” for the cryptocurrency industry with respondents listing out eight possible factors and the severity of the same. It should be noted that the responses to the above were answered in May 2019,