Bulls. Bears. Regulation. Fear. Uncertainty & doubt. All of these are synonymous with traders’ experiences in the markets. All are amplified when applied to the experience in the cryptocurrency market[1].
With a solid 18 months of exponential growth in the cryptocurrency market, investors looking to tap into the opportunity are always wondering: What’s next? Where’s this taking us?
While no one has the magic formula, the early trends in 2018 suggest that there are changes that early ICO investors may want to be mindful of – allowing one to adjust his or her strategy as necessary. Here are some of the top Q2 2018 adjustments that will influence how investment in ICOs will transpire over the next two quarters:
Securitization
While regulators have not released or created official guidelines on regulation, the entire industry is inferring the same thing: regulation is coming. One of the trends that savvy ICOs are tapping into is the securitization of their token offerings. Azbit[2] and tZERO[3] are among the companies that have gone with the trend and introduced security tokens as part of their offerings.
Because this move towards security tokens is so significant, large platforms have been quick to announce their availability. NewChip[4], for example, now offers security tokens on its platform. Services like Securitize[5] have sprung up to support issuers looking to tokenize assets.
Applying traditional market rules and regulations to token offerings in the hopes of getting ahead of regulation is something that investors will need to be mindful of. If regulators begin cracking down on ICOs, investors might choose to transact on exchanges such as
