With 2019 just around the corner, the time has come to reflect on the events of 2018, but above all, to take into account what we reserve for next year. With a moaning bear market that dampens the clamor of the crypt, it is easy to forget that blockchain technology continues to deliver many promises.
While some may complain about the entry of regulators in 2018, the blocking of ICO projects and the implementation of rigid frameworks for compliance, these are the signs of a maturing market. Apart from speculators, industry experts knew that Crypto's Wild West was just a transitional phase and, as it moves towards its conclusion, it is time to focus on holistic and sustainable growth with real and tangible benefits.
Tendency n. 1: the arrival of security tokens
While 2018 has marched and the token utility market has seen a slowdown, the industry has talked a lot about the arrival of security tokens. This is for a good reason.
The market has long awaited the great entry of institutional investors, but they have not yet entered the market significantly. This was partly attributed to the fundamental offerings of Ico. Utility tokens that offer usability are not substantial enough for investors who are used to buying holdings in companies.
Enter security tokens. The familiarity of the IPO world combined with the advantages of the blockchain is an offering that promises to redefine the IPO business. The idea of programmable equity offers opportunities for immense liquidity and efficiency at lower costs. Coupled with access to global capital pools, 24 hours a day, 7 days a week, opportunities abound.
However, it is still a promise, as the market infrastructure for the listing and trading of security and asset tokens is still ongoing. But change is coming, with 2018 seeing the main cryptographic and traditional exchanges calling for brokerage licensing projects in preparation. With the market still growing – we expect to see the opening of trading with security token trading in 2019. However, it is likely in the early stages that liquidity will be limited.
The success of security tokens is dependent on the fact that exchanges of digital resources are active and in progress. With exchanges such as Coinbase, Binance and Lykke, even traditional players like Nasdaq, London Stock Exchange and the Swiss Stock Exchange are already working on developing and seeking authorization for security token exchanges, we believe that market infrastructures will be in place within 2-3rd 2019. As the processes stabilize and regulatory concerns are addressed, we will see the launch of several STO projects towards the end of 2019, with major assets and greater liquidity at the start of 2020.
Trend # 2: the increase of alternative activity classes: change from cryptographic resources to digital resources
With several indicators pointing to the possibility of a global slowdown especially in the stock and bond markets next year, investors, as always, are looking for alternative asset classes. With the developing security token market, there are enormous possibilities in the tokenisation of well-functioning assets that previously lacked liquidity. Consider healthy small and medium-sized enterprises (SMEs) and real estate businesses, which tend to have robust returns, but lack broad market access.
Although they may not be able to afford a listing in the public market, the opening up to global investors markets could provide a capital infusion that could really scale their assets. With over 90% of companies globally listed as SMEs, the growth potential is significant.
Trend 3: the creation of decentralized platforms for the ecosystem and new business models
Among all the methods to exploit the power of the blockchain, one that has aroused interest across borders and industries is the possibility of developing B2B2C ecosystems. A 2017 McKinsey study reported the importance of ecosystems in the future, suggesting that new ecosystems will emerge in place of many traditional industries with over 50 trillion revenues by 2025. Not unlike e-commerce over the years & # 39; 90, the vast potential for growth and the disruption of decentralized P2P ecosystems is yet to be discovered.
In enabling efficient peer-to-peer transactions through shared APIs, the potential of a decentralized ecosystem based on the smart contract is vast. This also implies the construction of new business models, in a framework of cooperative competition, with competitors coming together to build ecosystems that connect various actors through the life cycle of any product and the end-to-end provision of services.
While this concept has already seen some implementations in 2018, the experiments have brought learning rather than success. The experiments helped identify complications in implementation, such as the need for a corporate governance model that allows all ecosystem actors to have a voice without a single leader.
& nbsp; The learning of unproductive experiments opens the door to further progress in 2019, with new and innovative decentralized ecosystems under development by the end of the year.
Trend # 4: The real winners – Hybrid models
It is increasingly widely accepted that blockchain is here to stay. Although the technology is aimed at the depression of disillusionment on the Gartner hype cycle, there is investment in technology development and greater regulatory clarity.
At the end of 2018, blockchain remains the darling of technology experts, but is still perceived as a new, vague, not yet understood, new operator of the technological conservator. The real winners of 2019 will be companies able to overcome the cryptic and fiat worlds, allowing digital connections between the two. This link is a necessity in all sectors, from storage, to trade, to asset management of digital resources, to real-world technology applications for the third, such as voting and registering land.
The end of 2018 also marks the end of the crypto-hype and we welcome the next phase of development of digital resources as we go up slope of the lighting and towards the productivity plateau.
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With 2019 just around the corner, the time has come to reflect on the events of 2018, but above all, to take into account what we reserve for next year. With a moaning bear market that dampens the clamor of the crypt, it is easy to forget that blockchain technology continues to deliver many promises.
While some may complain about the entry of regulators in 2018, the blocking of ICO projects and the implementation of rigid frameworks for compliance, these are the signs of a maturing market. Apart from speculators, industry experts knew that Crypto's Wild West was just a transitional phase and, as it moves towards its conclusion, it is time to focus on holistic and sustainable growth with real and tangible benefits.
Tendency n. 1: the arrival of security tokens
While 2018 has marched and the token utility market has seen a slowdown, the industry has talked a lot about the arrival of security tokens. This is for a good reason.
The market has long awaited the great entry of institutional investors, but they have not yet entered the market significantly. This was partly attributed to the fundamental offerings of Ico. Utility tokens that offer usability are not substantial enough for investors who are used to buying holdings in companies.
Enter security tokens. The familiarity of the IPO world combined with the advantages of the blockchain is an offering that promises to redefine the IPO business. The idea of programmable equity offers opportunities for immense liquidity and efficiency at lower costs. Coupled with access to global capital pools, 24 hours a day, 7 days a week, opportunities abound.
However, it is still a promise, as the market infrastructure for the listing and trading of security and asset tokens is still ongoing. But change is coming, with 2018 seeing the main cryptographic and traditional exchanges calling for brokerage licensing projects in preparation. With the market still growing – we expect to see the opening of trading with security token trading in 2019. However, it is likely in the early stages that liquidity will be limited.
The success of security tokens is dependent on the fact that exchanges of digital resources are active and in progress. With exchanges such as Coinbase, Binance and Lykke, even traditional players like Nasdaq, London Stock Exchange and the Swiss Stock Exchange are already working on developing and seeking authorization for security token exchanges, we believe that market infrastructures will be in place within 2-3rd 2019. As the processes stabilize and regulatory concerns are addressed, we will see the launch of several STO projects towards the end of 2019, with major assets and greater liquidity at the start of 2020.
Trend # 2: the increase of alternative activity classes: change from cryptographic resources to digital resources
With several indicators pointing to the possibility of a global slowdown especially in the stock and bond markets next year, investors, as always, are looking for alternative asset classes. With the developing security token market, there are enormous possibilities in the tokenisation of well-functioning assets that previously lacked liquidity. Consider healthy small and medium-sized enterprises (SMEs) and real estate businesses, which tend to have robust returns, but lack broad market access.
Although they may not be able to afford a listing in the public market, the opening up to global investors markets could provide a capital infusion that could really scale their assets. With over 90% of companies globally listed as SMEs, the growth potential is significant.
Trend 3: the creation of decentralized platforms for the ecosystem and new business models
Among all the methods to exploit the power of the blockchain, one that has aroused interest across borders and industries is the possibility of developing B2B2C ecosystems. A 2017 McKinsey study reported the importance of ecosystems in the future, suggesting that new ecosystems will emerge in place of many traditional industries with over 50 trillion revenues by 2025. Not unlike e-commerce over the years & # 39; 90, the vast potential for growth and the disruption of decentralized P2P ecosystems is yet to be discovered.
In enabling efficient peer-to-peer transactions through shared APIs, the potential of a decentralized ecosystem based on the smart contract is vast. This also implies the construction of new business models, in a framework of cooperative competition, with competitors coming together to build ecosystems that connect various actors through the life cycle of any product and the end-to-end provision of services.
While this concept has already seen some implementations in 2018, the experiments have brought learning rather than success. The experiments helped identify complications in implementation, such as the need for a corporate governance model that allows all ecosystem actors to have a voice without a single leader.
The learning of unproductive experiments opens the door to further progress in 2019, with new and innovative decentralized ecosystems under development by the end of the year.
Trend # 4: The real winners – Hybrid models
It is increasingly widely accepted that blockchain is here to stay. Although the technology is aimed at the depression of disillusionment on the Gartner hype cycle, there is investment in technology development and greater regulatory clarity.
At the end of 2018, blockchain remains the darling of technology experts, but is still perceived as a new, vague, not yet understood, new operator of the technological conservator. The real winners of 2019 will be companies able to overcome the cryptic and fiat worlds, allowing digital connections between the two. This link is a necessity in all sectors, from storage, to trade, to asset management of digital resources, to real-world technology applications for the third, such as voting and registering land.
The end of 2018 also marks the end of the crypto-hype and we welcome the next phase of development of digital resources as we go up slope of the lighting and towards the productivity plateau.