“To undertake is also to know the time to stop”. The phrase represents the end of the cryptocurrency company Investtor, which on Monday (01) announced the closure of activities. The company allowed the construction of a cryptocurrency portfolio, based on the customer's profile and also served as an investor guide.
"We decided to stop and concentrate efforts and resources on other projects", said this Thursday (04) to the Bitcoin Portal, Lorenzo Frazzon, chief strategist and founder of Investtor.
In a note, the company asked customers to fully sell their positions within 90 days, which ends on August 30. After the date, access to the platform may be blocked.
According to the statement, the Investtor project brought challenges, generated learning and contributed to the growth of the market.
As Lorenzo said, he and his partners have other businesses in the financial and technology markets. As Investtor's growth was not meeting their expectations, they decided that it would be better to focus on other projects.
Asked about liquidity, Lorenzo stated that they are ending the project with plenty of liquidity. And he stressed that Investtor has always been solvent. "110%," he said.
The businessman also did not deny that the current crisis influenced decision making, but that custody risk was one of the most relevant points.
"Even though they are extremely diligent and concerned about it," he said, adding that "it is necessary to be prudent with the allocation of business capital."
‘Risk-return’ was already on the agenda
“The (closing) possibility was discussed in February and the post-pandemic results ended up accelerating that decision. Despite the market showing an advance, we even grew in that period, but it was still below what we expected ”, he explained.
Lorenzo said the decision also took into account – in the view of entrepreneurs – the risk-return relationship in business. This is because the current asymmetry was not favorable, given the risks involved and the size of the market.
"I speak of the size of the market, as our clients were not those root enthusiasts of the crypt market, but that investor who already had an investment portfolio with other asset classes," he explained.
Businessman sees the market consolidating
Lorenzo believes that the cryptocurrency market is undergoing a period of consolidation, citing as an example, the emergence of products such as Investment Funds in the traditional capital market legislation.
“It contributes to that. As well as consolidation of exchanges with greater liquidity and better operational processes ”, he commented.
Didn't rule out broker's return
The economist and entrepreneur also said that he will continue to contribute to the cryptocurrency market in Brazil and did not rule out the company's return in the future. "Maybe with a different model," he said.
“I will continue to educate and help cryptocurrency investors. I am really passionate about this market and I do not see it segregated from the traditional financial market ”, he concluded.
This source of this article is portaldobitcoin.com.