The cryptocurrency market is turning around creating opportunities too good for Wall Street investors to miss. As a result, every major bank is announcing the formation of a cryptocurrency trading desk in the near future. Major venture capital funds already back several ICOs and blockchain start ups like “Basis” and “Mobile Coin”. Some analysts now predict that the bulk of Wall Street investment will enter the crypto market on the third quarter of 2018. So the question in current HODLers’ minds is, what changes will this bring? Nothing is certain but likely possibilities are that Bitcoin’s price will rise, ICOs will become STOs, and regulation will be prevalent.
Pantera capital, the largest investment firm in the world predicts the total crypto matketcap will reach $40 trillion USD in ten years. Cryptocurrency wallet and global remittance app Abra, also predicts an all out bullish crypto market starting this year. A Wall Street creation in itself, Abra’s raised $40 million in funding by some of the largest venture capital firms like Arbor and RRE Ventures, American Express, and First Round Capital. With a crypto marketcap in the trillions of dollars, Bitcoin’s price can easily reach $900,000 to $1 million. Wall street’s investors see this as a major opportunity to capitalize and possibly control the future crypto investment.
STOs – Security Token Offerings
This is a new fundraising model championed by Overstock CEO Patrick Byrne and it’s a taste of things to come. Once Wall Street enters the crypto market utility coins will become securities; either Initial Security Offerings (ISOs) or STOs. One of the first STO is “Eliocoin”; a fund led by Wall Street firm Jones Trading. Its goal is to fund production of three-wheel car maker Elio Motors. STOs are a way to appease the SCE and avoid scrutiny by labeling the investment as a security. Unfortunately, the model is also an attempt to completely eliminate ICOs and replace them with STOs. And that is a major threat to the average investor.
According to research firm Autonomus Next, ICOs raised approximately $9.8 billion since 2016. This caught the attention of the SCE who has since clamped down on fraudulent companies and its founders. Switzerland’s authorities announced that all ICOs launched from there will be examined. This creates the perfect hostile environment for crypto currencies and pushes them to convert into securities; securities regulated by law and and following standards set by Wall Street investors.
With the announcement that NASDAQ is open to crypto currency trading, acreddited investors will again be positioned to control the future of trading and investing. Polymath’s ST-20 standards may become a model for the development of digitized tokens. And exchanges are already implementing a criteria for all new ICOs which include legal compliance. The writing’s on the wall; when big money enters the market, crypto will be regulated and controlled in the same way commodities currently are. And future investment opportunities will be exclusive to accredited investors, leaving the common investors with diminished profits and stark prospects.