The Great Shift from Crypto to Securities
Navigating the New Landscape of Crypto-Securities and What it Means for Your Wallet
Welcome, my token-curious compatriots, to another thrilling episode of "Tokenized Asset Insider" where we decode the world of Tokenization and security tokens, one secure byte at a time.
This week, we're diving into the deep end of the digital pool, exploring the fascinating and seemingly inevitable shift of cryptocurrencies from the wild west of non-securities to the more regulated lands of securities.
And who better to guide us through this transformation than our friends at INX, who are striving to be the pioneers of this new frontier, armed with their crystal ball and a strict selection of coins?
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🔒 NEED TO KNOW 🔒
1. The Crypto Game is Changing and a New Era of Regulation is Here
Alright, let's talk crypto, folks. Think of it this way: imagine you're at a football game, trading team stickers as if they were simple pieces of colored paper. Suddenly, the game's officials are saying these aren't just pieces of paper, they're actual tickets to the game, and you can't trade them without following the rules for ticket exchanges.
Gensler and the SEC are on the War Path
That's exactly what's happening with cryptocurrencies right now. The powers that be are starting to see cryptocurrencies not just as digital coins, but as securities, akin to stocks or bonds, that need to be regulated. In the past, we could trade Bitcoin, Ethereum, and their crypto-cousins freely, like swapping those team stickers.
INX Claims all Crypto going to Securities
But the times, they are a-changin'. Itai Avneri, COO of blockchain trading firm INX, has declared that the era of trading cryptocurrencies as non-securities is ending. That means stricter rules and regulations for how we can trade these digital assets – the officials have caught onto our sticker swap and want in on the game.
What that means
Now, don't get jittery on me, this isn't necessarily a bad thing. Remember when your favorite garage band got signed by a major record label? Sure, things changed, but they suddenly had the backing and structure to play on bigger stages. That's what we're seeing here. Avneri even said that these thousands of cryptocurrencies now need to find a way to be converted into securities and listed on platforms like INX.
Time to rethink Crypto?
This could lead to more legitimacy and stability in the crypto world – a step up to the big leagues. And unlike platforms such as Coinbase or Binance.US that have hundreds of cryptocurrencies listed, INX is more like an exclusive club, only listing five cryptocurrencies and focusing mainly on tokenized securities1. So, let's buckle up and see how this new game plays out, shall we?
⚡INVESTMENT OPPORTUNITIES ⚡
💡2. Security Token WatchList
I've put together a carefully curated watchlist that includes some of the most innovative and promising security tokens in the market. So, let’s quickly summarize what each of them represents:
The Trucpal security token is a blockchain-based SaaS platform serving the Chinese freight market. The token is set to be listed on the INX marketplace, a regulated alternative trading system, and it will be available to international and US accredited investors. Unfortunately, specific details about the offering were not provided
The Advent security token, Hollywood’s first entertainment security token offering, offers a rare opportunity to participate in potential future profits of Hollywood productions, video games, etc.
The Treasure Experience token, the first security token that opens a treasure chest to potential profits from monetizable items rescued from shipwrecks and global treasure sites.
The TurnCoin (TXC) security token offers a chance to own a share in the global gross revenue of the “World’s First Xchange for Talent.”
The XMANNA security token, the first digital security token sale of its kind to offer investment exposure to the Web3 markets.
🦄 EXPERT TOKENIZATION INTERVIEWS 🦄
3. Are Utility Tokens Obsolete? The Rise of Security Tokens
Kristian T. Sorensen discusses security tokens and European regulations with me on the tokenizer's news and data platform.
🏫 TOKENIZATION EDUCATION 🏫
4. Report on How Token Price is Impacted by Token Unlocks
The study by @6thManVentures reveals that the volatility of token prices can be mitigated by unlocking smaller amounts relative to the circulating supply, particularly unlocks under 1% which showed no correlation to price. Conversely, larger "cliffs" or sudden releases of tokens tend to result in price decreases, sometimes as much as 20%, with recovery potentially taking up to two months, thereby suggesting a need to rethink this strategy in token design.
5. ETF tokenization: Game Changer or Fad?
What is it?
Let's talk about this super cool trend that's been picking up speed: turning ETFs (that's Exchange-Traded Funds, like a basket of stocks you can buy all at once) into crypto tokens that live on the blockchain. Some big-time companies you might have heard of, like WisdomTree and BlackRock, are trying this out.
But it's like the wild west out there, folks. Not everyone is convinced that this is the future, and there are some hurdles to jump over, like how this fits with the rules that keep our money safe. First mover advantage went to www.tetraguard.io
Why is it important?
So why should you care about all this? Well, picture being able to trade these ETFs any time you want, day or night, and having your trades go through instantly. Plus, these tokens might be cheaper for you to trade, and you can even buy just a piece of one if you want.
It's like trading cards, but for stocks! And the best part? Everything you do is recorded permanently on the blockchain, so it's super transparent.
But remember, this is like the first level of a video game. There are some tough bosses ahead, especially when it comes to making sure everything is done by the book and keeping your investment safe. It's a wild ride, but that's what makes it exciting, right?
6. The $5 Trillion Championship on the Horizon
Despite some hiccups in the crypto field, the future of tokenization - think of it as digital trading cards for valuable real-world stuff - is looking bright, with predictions of it being a $4-5 trillion game by 2030.
Companies like Centrifuge are already stepping up to the plate, showing how these tokens can earn big, much like a superstar baseball player helping a team score the championship. (READ)
🚀 TECHNOLOGY SPOTLIGHT 🚀
7. Trade Your Real World Assets Like Baseball Cards: The New Age of Investment
So, you know how we often talk about how technology is reinventing the way we handle our assets? Well, DigiShares and Texture Capital are doing just that. They're shaking up the game by making it easier to trade tokenized real-world assets, such as real estate, on a secondary market, sort of like trading baseball cards but with skyscrapers and shopping centers.
What is it?
This partnership is like two master chefs coming together to create an incredible new dish. DigiShares brings the recipe (their platform for managing and trading tokenized assets), and Texture Capital adds the perfect spices (their regulated system for launching tokenized digital securities marketplaces). This dynamic duo is set to cook up a storm in the real-world asset market!
Why does it matter?
So Imagine owning a piece of your favorite celebrity's mansion, kind of like owning a share in a video game loot box, only this one's more tangible and potentially lucrative. That's what tokenization is all about, and with DigiShares and Texture Capital working together, it's becoming easier and safer to do!
8. FTX (Yes that One) is Playing Monopoly in Real Life
What Happened?
I know, I know! It’s FTX, but the old regime is out and the new one is trying to make people whole. And what better way to do it then with tokenization. This isn't just a fad - it's like the internet of the 90s, a game-changer, just waiting to explode.
You see, tokenization lets you take your high-value assets, the ones you've been tucking away in your vaults, and turn them into digital tokens. Imagine having a digital twin of your Picasso, your rare vintage car, or your beachfront property, that you can trade around the globe, like trading cards among teenagers.
What they did
Now, here's the kicker. Some folks found themselves in hot water when FTX went belly up. But, FTX is trying to turn lemons into lemonade by using these tokenized loans to pay off their debts. It's like using Monopoly money to pay off real debt, except this Monopoly money has real-world value.
🎯AUTHOR BIO 🎯
Meet Mark Fidelman, the tech-savvy founder of SmartBlocks.Agency, who has been making waves in the world of crypto and ecommerce for over two decades. With a background in technology sales, marketing, and customer experience, Mark has been instrumental in driving growth for organizations such as NFT leader WAX.io.
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