Can "Stocks on Blockchain" Reinvigorate the Falling Cryptocurrency Market?

Tokenization, Bitcoin ETF, Bitcoin futures and security token offerings (STOs) are the new keywords that investors are considering will lead the next bull in the cryptocurrency market. The exchange of securities was traded by the newly developed digital trading platform DX.Exchange regulated by Nasdaq's Financial Information Exchange (FIX).

And we are finally live! Welcome to https://t.co/gavrexaT1d! Register now to start trading! #exchangeyourway pic.twitter.com/QN1joUR6SE

– DX.Exchange (@DXdotExchange) January 7, 2019

Why Tokenization on top of Nasdaq's Matching Engine

DX.Exchange which was launched on January 07, 2019 has committed to offering 'Tokenized stocks of Nasdaq's top companies including Apple, Tesla, Google, Facebook, Intel and unlike. "

Accordingly, any investors can stresslessly purchase the 'stocks of Nasdaq listed companies' in any denomination of cryptocurrencies and fiat money – even after the closing hours of stock markets. The process named these stocks as the 'security tokens'.

To understand why it is huge news, let's delve into …

During an interview, CEO of DX.Exchange, an Estonia based crypto firm extended to major cryptocurrencies. LTC and XRP on the newly launched exchange – LTC with trading pairs of BTC, ETH, USD and XRP with BTC, ETH, EUR, JPY, USD respectively.

Amedeo Moscato, chief operating officer of DX, addressing the potentials of the platform. Exchange told CNBC,

"The crypto community has been talking about security tokens for well over a year now without much progress, so we think the impact will be huge,"

DX.Exchange is encouraging all awaiting old and new traders to participate in the market. Such a model can be used to cut the need for middleman Besides the convenience and cost reduction, DX.Exchange offers higher liquidity of the stocks with its 'trade around the clock' ability.

With the fact that 'Nasdaq's matching engine technology' is already being used across the 70 plus international markets, a few experts believe it would be the backbone for 'better investment options than investment in crypto'. It is also perceived as a potential source of fundraising for firms – startups as well as large firms'.

Are there any red signals?

In a mail sent to CNBC media, a fintech company's co-founder and chief executive, Dan Doney questioned on the regulatory stance of DX.Exchange trading model. Besides encouraging the convenience and liquidity, that has also raised the key questions that many of us have ignored. He remarked,

"We're unsure and even skeptical of DX. Exchange's model because we do not think that it is acceptable to list,

"However, we do think that the model can meet regulatory standards if executed properly."

Is ICO fever over? Will STOs live up to expectation?

China and South Korea have already been banned ICO practices within the terriroty. Significantly, a recent study revealed 80 percent of ICOs conducted in 2017 were scams.

Since ICOs appeared as the 'controversial topic' from the last two years, a new concept emerged in the market as 'security tokens' and as such the crowdfunding process could be called as 'security token offering' (STOs). Dan Doney stated the key difference between ICOs and STOs is;

"Security tokens use blockchain to allow for efficient transactions like cryptocurrencies, but are different in all other ways,"

While ICOs are not regulated, they are said to be automated regulatory compliance. Moreover, it has been installed with the stabelcoins, pegged by fiat currencies. Doney further added,

"(They) emphasize regulatory compliance, automated regulatory reporting, and represent share interest in value-producing assets. This ultimately provides stable value versus the volatility of crypto. "

Do you think Tokenized stocks the next big thing for crypto space? Do you think it can be the next biggest revolution in the financial market? Share your thoughts with us in comments.