Founder of Cryptocurrency Investment Company Says, “The Era of Easy Profits in Cryptocurrencies Is Over,” Predicts What Lies Ahead

Nick Tomaino, founder of the cryptocurrency investment company 1confirmation, made noteworthy comments regarding the cryptocurrency sector.

Tomaino, posting on the X platform, stated that the era of “easy profits” in the crypto market is over and that the growth model based on token speculation will be replaced by product-focused growth.

According to Tomaino, the total market capitalization of cryptocurrencies is currently around $3.1 trillion. While this figure represents a decrease of approximately 14% in the last year, it’s worth noting that the total value of the cryptocurrency market was zero in 2009. Tomaino argued that this long-term perspective shows the sector is still in its early stages.

The founder of 1confirmation stated that 2025 will be a turning point for the crypto sector, and offered the following assessment:

Tomaino argued that venture capital-backed “pump-dump” models, memecoins, and DAT (Digital Asset Treasury)-like structures are no longer sustainable. According to Tomaino, these models have failed to deliver meaningful value to investors in the long term.

However, he stated that last year marked the first time in crypto history that products not based on token speculation performed better. Tomaino specifically mentioned prediction markets and stablecoin-based products, adding that the path to achieving “exceptional returns” in the future lies in developing and actively using such products.

Nick Tomaino pointed out three fundamental points that have remained unchanged in the industry over the years:

• It is always vital to be able to discern the true nature of fraudulent schemes.
• The decline in trust in institutions on a global scale and the increasing importance of the internet are enduring macro trends; in this environment, reliable and neutral currencies offer meaningful investment opportunities.
• There are only two cryptocurrencies that can truly deliver on the principle of “reliable neutrality.”

At this point, Tomaino stated that only Bitcoin and Ethereum met these criteria.

*This is not investment advice.