A day after announcing his departure from the bitcoin industry, one of the first things he did was check in on his former employer, Bitfinex.
The cryptocurrency exchange, which has since been acquired by a number of other investors, employs a handful of staff and has been growing rapidly over the last year.
“I have been happy at Bitfinexs, as has everyone else here at BTCX,” he said, adding that he plans to stay and work on the team until the new company is up and running.
“I’ll be here until we have a functioning bitcoin exchange in the next few months.”
Mcneiil is one of a few prominent figures at the bitcoin exchange who have been vocal about the need to build a more stable and trustworthy ecosystem.
He also noted that the firm’s business model relies heavily on the exchange’s trust.
Last week, the firm revealed that it was raising $1.2 million in a Series C round led by institutional investors led by Benchmark, the investment arm of Benchmark Capital, which invested in other bitcoin startups including Circle and Coinsetter.
The funding round comes after several months of public disclosures of questionable trading activity and poor trading performance, raising questions about whether the firm is complying with regulatory requirements.
The news has spurred speculation about a possible crackdown on bitcoin trading, with a number trading platforms, including Coinbase and Bitfinexes, already removing users who fail to abide by strict anti-money laundering (AML) guidelines.
But even if bitcoin exchanges are able to avoid regulatory oversight, it’s not clear if the industry will be able to sustain itself for the long term.
In an interview with CoinDesk, Jessica Lee, co-founder of Bitcoin Magazine, an independent bitcoin publication, said that the market is facing a “tipping point” in its expansion, which could see the industry crash.
Bitcoin is not only the most popular cryptocurrency, but it has become a platform for many other, emerging cryptocurrencies, she said.
“It is a very exciting platform, and people are moving into it, but its going to be very hard to sustain it,” she said, referring to the possibility that some of the newer coins will not survive the ride.
While the recent price gains have attracted a great deal of attention, Lee said that bitcoin’s overall fundamentals have not improved much.
Lee said that while it is hard to predict the long-term trajectory of bitcoin, she believes it is a bubble.
She said that investors are “trying to hold onto a bunch of gold in this space, but the thing about bitcoin is that there’s only so much gold there is,” she added.
When asked about a potential crackdown on the bitcoin trading industry, Lee did not explicitly address that possibility, but said that there are many “good people” in the industry who are willing to step forward and speak out.
On the topic of a crackdown, Lee agreed that the situation would have to change for the industry to survive.
“[Bitcoin is] going to continue to grow, and its a bubble,” she told CoinDesk.
“We need to get to the tipping point.
The next generation is going to come in and replace the old generation.
They’re going to need to be able compete with bitcoin and they need to have an industry that’s not going to let them get away with it.”