Nick Tomaino, founder of crypto investment firm 1confirmation, made some notable comments regarding the crypto sector.
In a post on the X Platform, Tomaino said that the days of “low-hanging fruit” in the crypto market are over, and growth models based on token speculation will be replaced by product-centric growth.
According to Tomaino, the market capitalization of cryptocurrencies is currently around $3.1 trillion. Although this figure represents a decrease of around 14% over the last year, it is worth noting that the total value of the cryptocurrency market in 2009 was zero. Tomaino argued that this long-term view shows that the sector is still in its infancy.
The founder of 1confirmation stated that 2025 will be a turning point for the cryptocurrency sector and provided the following assessment:
Tomaino argued that venture capital-backed “pump-dump” models, memecoins, and structures like DAT (digital asset treasury) are no longer sustainable. Tomaino says these models fail to deliver meaningful value to investors over the long term.
However, last year was the first time in crypto history that products not based on token speculation performed better, he said. Tomaino specifically mentioned prediction markets and stablecoin-based products, adding that the path to achieving “extraordinary returns” in the future lies in the development and active use of such products.
Nick Tomaino pointed out three fundamental things that have remained the same in the industry over the years.
- It is always important to determine the nature of the fraud scheme.
- Decreasing trust in institutions and increasing importance of the Internet on a global scale are persistent macro trends. In this environment, reliable and neutral currencies offer meaningful investment opportunities.
- There are only two cryptocurrencies that truly live up to the principle of “trustworthy neutrality.”
At this point, Tomaino said only Bitcoin and Ethereum meet these criteria.
*This is not investment advice.
