Cheong: “Has a promising future”

Venture capitalist Arthur Cheong made a remarkable debut, claiming that the rise in AKT, the service token of the decentralized finance (DeFi) protocol Akash Network, which has replicated the astronomical price increases seen in some altcoins since the beginning of the year, will continue in the long run.

Arthur Cheong, founder and CEO of DeFiance Capital, called for a bullish long-term, underlining that the cloud-focused DeFi protocol Akash Network (AKT) has a promising future. Implying that the rise in AKT will continue, Cheong said:

Extremely promising project with good foundations and industrial tailwind. It has doubled in value in a week, with hardly anyone in the cryptocurrency community at X talking about it. Since this tailwind has been active since January, it’s a good confirmation that not every short-term narrative should be followed to make big gains.

Akash Network, which also focuses on machine learning and artificial intelligence (AI), is trading at $1.16 at the time of this writing, down 12.7 percent in the last 24 hours after its big breakout since the beginning of the month. Despite the recent withdrawal, the 136th largest cryptocurrency by market value has increased by 68.52 percent in the last 7 days, 106.18 percent in the last 30 days and 174 percent in the last 1 year. A key driver of the price spike was the project’s launch last week of the testnet of the Stable Payments feature, which allows investors to make payments using USD Coin (USDC), one of the leading stablecoins Circle issues.

Cheong also pointed out that Layer 2 (L2) altcoins are currently very commodified. In an overall comment on L2 projects, the venture capitalist stated:

Announcing the token switch to L2 in 3 to 6 months will no longer give you a big rally. L2 that succeeds in the long run will be L2 that does not only do well in technology but also in token distribution. Base’s success is a perfect example of this. There is a serious rise in L2 projects that build the right infrastructure to attract tens of millions of users.