2018-12-2 01:22 |
Not too long ago (barely two decades), the internet was still a new thing. As such, it was unexplored, and nobody ever dreamed that it will become as big as it is today. Back then, people were uncertain about it, unsure of whether investing in it is worth it, but that still did not stop retailers and institutional investors alike from getting onboard.
Many assumed that this technology will go big sooner or later, but hardly anyone knew that it will be so big that everyone will have it. Despite this, the trend that came to be known as the “Dotcom era” was considered a once-in-a-lifetime opportunity for big investors of the 90s.
Today, only two decades later, it is believed that another such opportunity, or Dotcom 2.0 has arrived, and we call it blockchain.
Dotcom 2.0 — Blockchain As The Next Big ThingDespite the fact that 2018 has not been the best year for cryptocurrencies, it was definitely a year of the blockchain. Numerous companies have started recognizing its potential, and countless startups came to be just so that they could establish themselves as early market participants.
The blockchain is bringing new ways of trading, new platforms that can trade securities in a reliable and safe way, and many expect that most of such platforms will launch across the world in 2019. Trading volumes are growing all the time, and it is only a matter of time before large, established firms will relaunch as digital asset platforms in order to compete in this new world.
The future of the capital market industry is now being redefined, and everyone wants to be a part of it. However, the key to the change is believed to be a security token, obtained through STOs (Security Token Offerings).
This shift of all active capital markets and their re-issuing as digital securities is expected to be accompanied with an upwards of around quadrillion dollars. The best part is that wall street investors actually find futuristic companies like that quite attractive. So attractive, in fact, that they want to invest in them so much, that this intention alone moves their market value up.
In the meanwhile, companies that resist this shift will likely be avoided. Dotcom 2.0 is slowly starting to be a promise and will become a reality. The ability to adapt to this new reality will bring profit, while the inability to do so will leave such firms behind.
It is also important to make a clear distinction between STOs and ICOs. ICOs are usually associated with startups that have no revenue, while STOs are issued as private placements while being regulated as securities.
The Impact Of Security TokensThe new era will bring programmable, smart securities. As a consequence, each investor will have an opportunity to have their interests aligned with those of the company. Simply put, it will be possible for firms to offer a number of incentives to their investors. These incentives can include pretty much anything, including discounts to customers, a percentage of top-line revenue, and much more.
This will further boost the success of companies, as their interests will be the same as interests of investors. Investors will then have more reason to provide additional funds, while the company will grow and expand by fulfilling these goals. In other words, all that will limit the benefits is the company's own creativity when it comes to issuing securities, as well as their ability to express themselves to their investors.
Of course, there will be challenges along the way. There is still a need for a proper framework regarding security tokens so that STO assets will be compliant with regulators of various jurisdictions where they plan to operate. This will be even more difficult due to the fact that each STO offering has a potential to be unique, and a set of rules that will properly bind them all needs to be extremely specific and accurate.
However, since both retail and institutional investors are interested in investing in this futuristic world of finances, a common solution that will be good enough for everyone will definitely emerge at some point. Dotcom 2.0 is the future, and it has already started. The opportunity to become a part of it is now.
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