Security Tokens are Rad

There was a minute there where it seemed like maybe this Crypto thing was going to end badly. With more than 50% of ICOs failing and CNBC hyping Ripple as it tripled, the Crypto market had seemed to have gone haywire.

It was clear that fraud was rampant and people were pumping and dumping to their hearts content. This might have been fun for some but it was laying a horrendous groundwork for the future of what is an exciting space.

Now that seems to be changing following the recent SEC crackdown. Subpoenas issued to many players. Regulators coming to slam the wrong doers.

This is a very good thing.

The reason is clear: the legacy capital markets — the $300 Trillion global ones — are in desperate need of modernizing and the only way that can happen is with regulators on board.

What we saw in the last 24 months of the “ICO Boom” can be seen as a sort of prototype of where things are going. Ethereum, the most successful ICO ever, has taken the lead as the best ecosystem for players to play in, but it is only one of very many that will emerge in time. Those that followed have blatantly broken securities laws as they chased the dream fueled by greed and a global liquidity glut.

But this is just the beginning.

What these ICOs proved is that utility tokens, and other forms of tokenization, can be a highly sought after way to construct a company and an ecosystem. It is also a highly desirable thing for people to own because of its digital nature. The first utility token evah — Bitcoin — has proven utility tokens can have staying power if they are done right.

What will come from here will be the obvious: regulatory compliance is the way forward for companies and players in the space because that is the way to scale.

Interfacing with regulators will create the on-ramp to modernize the entire capital markets.

Ultimately Crypto Assets of various forms should be on the order of many Trillions if for no other reason than they will make owning things way more modern. Software enabled security tokens are a much smarter way to own things than some archaic concept called “stock”.

We are at Day zero of decades of Crypto so it is great the regulators are here to start to set things on rails that can work for a long time to come.

Giddy up folks. This will be a helluva ride.