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While the world of encryption still resembles the digital wild west for large financial corporations, there is hope that the cryptocurrency market "Go to the moon" once institutional investors join the ranks of individuals of high net worth and hedge funds in space (there are currently over 400 ).
This could happen sooner rather later, while many self-regulatory advances are taking place that are starting to arouse interest from institutional investors: actions focused on regulatory compliance and the addition of stability to the unstable cryptographic market are performed to demonstrate that the encrypted market is becoming mature for large financial firms.
2018: The year of security token offerings
L & # 39; regulatory clarity around ICOs and the encrypted market in general are at the center of the focus from the emergence of initial coin offerings (ICOs) last year. Not surprisingly, utility tokens (user tokens that are not designed as investments, thus exempting them from the federal laws governing securities) dominated the ICO space. However, in some cases, owners can not use utility tokens beyond the platform of the issuer. In terms of venture capital, most private businesses are relatively illiquid, which means that investors face a difficult and expensive time trying to convert them into cash.
Security tokens aim to solve both these fundamental problems. Unlike utility currencies, security tokens digitally represent ownership of assets, which is to say they are real financial securities. Security tokens are supported by assets, profits or revenues of a company, providing liquidity to investors.
Security tokens also add a supervisor supervision framework. Jay Clayton, president of the Securities and Exchange Commission (SEC) of the United States, declared on February 6, 2018 that he believes that every ICO should be considered a security . & nbsp; In order to comply with the SEC regulations, "security token offers" (STOs) are launched that will attract significant amounts of Wall Street capital over the coming months.
Regulatory uncertainty is a major problem for US entrepreneurs looking to create a token-based business. They are forced out to pursue their American dream. Ironically, the intelligent founders understood how to use global domiciles to stay within the law. Utility tokens and security tokens both need to be compliant. However, with security tokens there is now at least one path to the United States complying with US securities laws using the Reg D exemption or Reg A, as stated by Keith Teare, Executive Chairman of Accelerated Digital Ventures.
The Rise Fully compliant cryptographic exchanges
Fully compliant cryptographic exchanges are also on the rise. The Intercontinental Exchange (ICE) announced the intention to form a new company called B akkt to take advantage of Microsoft cloud solutions to create an open and regulated global resource ecosystem digital.
The company is working with a group of prominent organizations, including BCG, Microsoft, Starbucks and others, to create an integrated platform that allows consumers and institutions to buy, sell, store and spend digital resources on a seamless global network. In turn, this will bring a level of confidence to previously unregulated markets.
I believe custody and regulations are holding back institutional investors from investments in the cryptocurrency market. With regulated exchanges such as Bakkt, the institutional interest in providing reliance on Goldman Sachs and Northern Trust and security token platforms such as Harbor, will open the way for institutional investors to enter the space in the near future, said Paul Veradittakit, Partner of Pantera Capital.
The role of stable coins
And stable currencies are now used to attract institutional investors in the field of encryption. & nbsp; The financial tokenisation platform, STASIS recently launched EURS, a stable currency supported by the euro. The volume of orders is expected to reach $ 500 million by the end of this year.
According to the CEO and founder of STASIS, Gregory Klumov, one of the most urgent issues for institutional investors wishing to participate in the cryptocurrency market is the volatility of digital currencies. Having a stable currency supported by the euro, however, is designed to eliminate the volatility associated with cryptocurrency.
By combining all the benefits of digital currencies with stability, convertibility and frequent verification of traditional issuer resources, EURS helps users freely enter and exit the crypto-economy. European investors now have a reliable counterpart with a transparent budget to get a digital version of EURS. They can then transfer EURS between different stock exchanges to make transactions in the cryptographic assets of their choice, or invest in any ICO at a fixed price without risk of volatility, said Klumov.
The new stable EURS currency joins the dollar-bonded wire (USDT) and is based on Ethereum's EIP-20 standard. EURS is supported 1 per 1 by the euro and is currently trading on the London-based DSX exchange and Tokens.net, a new cryptocurrency exchange founded by the co-founder of the main Bitstamp cryptographic exchange.
"Bitcoin Moon" in 2018?
Progress such as security tokens, regulated trade and the increase in stable currencies are attracting institutional investors to the encrypted market, yet this is only the tip of the iceberg. In reality, these advances are only scratching the surface of what is likely to happen in the near future.
Insecurity on the yield curve reversal, trade wars and technology stocks with share peaks all contribute to the global appetite of a new unrelated asset class, said Miko Matsumura , General Partner of Gumi Crypto Fund. At the moment the institutions have too few ways to get exposure to this asset class, but the dam will break with the advent of ETFs and the exchange of regulated security tokens. We will probably see this price in the second half of 2018.
However, as regards the rise of a "Bitcoin Moon" this year, Teare thinks this takes longer.
I do not think the Bitcoin moon will be this year. I think we are probably looking at a 5-year horizon where major impacts will occur, and there will be peaks up and down during that time based on individual events. However, the long term will be significantly higher and the short term will probably be edgy on an upward curve. The Bitcoin trading range will reflect that curve towards the top.
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While the world of encryption still resembles the digital wild west for large financial corporations, there is hope that the cryptocurrency market "will go to the moon" once institutional investors join the ranks of high net worth individuals and hedge funds in space (there are currently more than 400 ).
This could happen sooner rather than later, given that much self-regulation progress has been made that is starting to attract interest from institutional investors. Actions focused on regulatory compliance and the addition of stability to the unstable cryptographic market are performed to demonstrate that the cryptographic market is becoming mature for large financial companies.
2018: The year of security token offerings
Regulatory uncertainty regarding ICO and the crypto market in general has become the focus of attention from the emergency of the first coin offerings (ICO) last year. Not surprisingly, utility tokens (user tokens that are not designed as investments, thus exempting them from the federal laws governing securities) dominated the ICO space. However, in some cases, owners can not use utility tokens beyond the platform of the issuer. In terms of venture capital, most private businesses are relatively illiquid, which means that investors face a difficult and expensive time trying to convert them into cash.
Security tokens aim to solve both of these fundamental problems. Unlike utility currencies, security tokens digitally represent ownership of assets, which is to say they are real financial securities. Security tokens are supported by assets, profits or revenues of a company, providing liquidity to investors.
Security tokens also add a supervisor supervision framework. Jay Clayton, president of the Securities and Exchange Commission (SEC) of the United States, declared on February 6, 2018 that he believes that every ICO should be considered a security . To comply with the SEC regulations, "security token offers" (STOs) are launched and in the coming months will attract a significant amount of Wall Street capital.
Regulatory uncertainty is a fundamental problem for US entrepreneurs seeking to create a token-based business. They are forced out to pursue their American dream. Ironically, the intelligent founders understood how to use global domiciles to stay within the law. Utility tokens and security tokens both need to be compliant. However, with security tokens there is now at least one path to the United States complying with US securities laws using the Reg D or Reg A exemption, he said Keith Teare, executive chairman of Accelerated Digital Ventures.
The Rise Of Fully Compliant Cryptographic Exchanges
Fully compliant cryptographic exchanges are also on the rise. The Intercontinental Exchange (ICE) announced the intention to form a new company called B akkt to take advantage of Microsoft cloud solutions to create an open and regulated global resource ecosystem digital.
The company is working with a group of prominent organizations, including BCG, Microsoft, Starbucks and others, to create an integrated platform that allows consumers and institutions to buy, sell, store and spend digital resources on a seamless global network. In turn, this will bring a level of confidence to previously unregulated markets.
I believe custody and regulations are holding back institutional investors from investments in the cryptocurrency market. With regulated exchanges such as Bakkt, the institutional interest in providing reliance on Goldman Sachs and Northern Trust and security token platforms such as Harbor, will open the way for institutional investors to enter the space in the near future, said Paul Veradittakit, Partner of Pantera Capital.
The role of stable currencies
And stable currencies are now used to attract institutional investors in the field of encryption. The financial tokenisation platform, STASIS recently launched EURS, a stable currency supported by the euro. The volume of orders is expected to reach $ 500 million by the end of this year.
According to the CEO and founder of STASIS, Gregory Klumov, one of the most urgent issues for institutional investors wishing to participate in the cryptocurrency market is the volatility of digital currencies. Having a stable currency supported by the euro, however, is designed to eliminate the volatility associated with cryptocurrency.
By combining all the benefits of digital currencies with stability, convertibility and frequent verification of traditional issuer resources, EURS helps users freely enter and exit the crypto-economy. European investors now have a reliable counterpart with a transparent budget to get a digital version of EURS. They can then transfer EURS between different stock exchanges to make transactions in the cryptographic assets of their choice, or invest in any ICO at a fixed price without risk of volatility, said Klumov.
The new stable EURS currency joins the dollar-bonded wire (USDT) and is based on Ethereum's EIP-20 standard. EURS is supported 1 per 1 by the euro and is currently trading on the London-based DSX exchange and Tokens.net, a new cryptocurrency exchange founded by the co-founder of the main Bitstamp cryptographic exchange.
"Bitcoin Moon" in 2018?
Progress such as security tokens, regulated trade and the increase in stable currencies are attracting institutional investors to the encrypted market, yet this is only the tip of the iceberg. In reality, these advances are only scratching the surface of what is likely to happen in the near future.
Insecurity on the yield curve reversal, trade wars and technology stocks with share peaks all contribute to the global appetite of a new unrelated asset class, said Miko Matsumura , General Partner of Gumi Crypto Fund. At the moment the institutions have too few ways to get exposure to this asset class, but the dam will break with the advent of ETFs and the exchange of regulated security tokens. We will probably see this price in the second half of 2018.
However, as regards the rise of a "Bitcoin Moon" this year, Teare thinks this takes longer.
I do not think the Bitcoin moon will be this year. I think we are probably looking at a 5-year horizon where major impacts will occur, and there will be peaks up and down during that time based on individual events. However, the long term will be significantly higher and the short term will probably be edgy on an upward curve. The Bitcoin trading range will reflect that curve towards the top.
