Recently Bitcoin led cryptocurrency markets to a market capitalization of roughly $300 billion for the first time since August 2019. After two years of a crypto bear market, 2020 has opened on the upswing.
In December of 2017, the overall market cap for cryptocurrency rose to $790 billion fueled by irrational exuberance for initial coin offerings or ICOs. As a blockchain based alternative venture funding method ICOs proved the case for blockchain’s ability to facilitate reliable peer-to-peer transactions.
Unfortunately, for many investors due to lack of vetting and regulatory oversight the majority of ICOs launched in 2017 failed to deliver on their promised yield.
It was during this period that fintech visionary and CEO of DealBox Thomas Carter pivoted from launching his own ICO to making a bet on the future of cryptocurrency as a new regulated asset class. Carter, a capital markets veteran was an early adopter and evangelist for what eventually would become known as security tokens.
In contrast to an ICO where funds were raised haphazardly based on nothing more than a website and a white paper in most cases, security tokens and tokenized assets are tied to real world value such as equity, company revenues, dividends, art, real estate, precious metals, etc.
As with traditional securities these tokenized assets fall under the regulatory auspices of the SEC and CFTC and are rigorously vetted. Unlike traditional securities however they are much more efficient, affordable, secure and easier to regulate due to the novel features of blockchain technology.
DealBox has gained attention lately with the creation of a feature-rich, and robust platform using a compliant token technology. DealBox gives issuers and investors a savvy approach to being first-in-line to invest in innovative new companies using smart securities issuance technologies.
Thomas Carter on DealBox and the next wave of capital markets evolution via blockchain technology:
“ICOs were the MVP of enterprise blockchain application to fintech. Tokenized assets are the production-ready version. Currently there are $256 trillion in tokenizable assets and if only 3% of those assets follow the current trend in tokenization that’s a $3 trillion market cap. Given the current momentum we are seeing, I believe a $1 trillion market cap is very likely in 2020.”
The momentum Carter is referring to is being fueled by institutional interest in cryptocurrency. Recently, Citigroup, Morgan Stanley and Goldman Sachs – three of the largest investment banks in the U.S. – have publicly presented plans to accommodate the growing interest in cryptocurrency from their investors.
Carter continues: “Investors are waking up to the reality that tokenized assets are in many ways superior to traditional asset classes. Tokenization provides a greater degree of transparency, shorter processing and remittance time, liquidity, trust and utility. The ICOs that did well from the 2017 era created tokens that had intrinsic value in their utility. Tokenized assets by the very nature of being tokenized also affords uncommon utility and in addition to that are tied to real world value metrics.”
In addition to institutional capital moving into cryptocurrency we are also seeing major improvements at the application level for crypto-powered software. Wallets, exchanges, games and other software have been refactored to enable better usability which has been a major stumbling block towards widespread adoption.
DealBox has been at the forefront of the better usability initiative with it’s, “Make Crypto Easy” campaign. Flagship project and DealBox issuer, Total Network Service (TNS) is making the sending and receiving of cryptocurrency easier with it’s product Digital Names by allowing it’s users to create a simple, human-readable name to replace the long, alpha-numerical addresses used in digital wallets.
Digital Names for cryptocurrency and digital wallets do what domain names did for the internet back in the 90s. Rather than remember a numerical IP address for a website you can simply type in www.google.com and arrive at the desired destination.
The projected growth of this nascent industry is potentially larger than the Domain Name Service Industry, which currently grosses about $6 billion a year. GoDaddy, one of the major DNS providers has a market cap today around $12 billion. This new industry and market opportunity will mint the next round of companies like this, of which Total Network Service is in position to take advantage of.
Thomas Carter, founder and CEO of DealBox, Inc; read about Thomas: “This FinTech Veteran Is Making Cryptocurrency Startup Funding Legitimate“; connect on LinkedIn and Instagram.