Despite speculations fronted by many media outlets, blockchain is nowhere close to giving up the ghost. The market may have had its ups and downs, but you will be hard pressed to name a market that does not experience the usual highs and lows.
No one can tell for sure what will happen tomorrow but blockchain is a technology that cannot be written off. Cryptocurrency comes with this technology and it has brought to the world of business a software utility which involves tokens.
Cryptocurrency markets may have suffered heavy setbacks, but they have been quietly working to bring about its newest innovation in the form of tokenized securities. Trybe explores how the crypto market is fairing.
Tokenization involves changing rights to an asset into digital tokens. The tokens are then stored in the blockchain. Tokenization has rapidly gained popularity in financial circles which is a great advantage for the cryptocurrency market.
What Cryptos Have Been up To
The Coinbase platform has been in talks with SEC to look into registering as a licensed brokerage firm. The firm also doubles up as an electronic trading platform. This merger would make it possible for the platform to bring to its 10 million-plus users’ attention to the availability of tokenized securities.
Other platforms have followed suit and have taken to offering their users security tokens. Even stock exchanges such as the Gibraltar S E and companies including OpenFinace Network, Share post and others are joining in. They seek to build strong platforms to be in a position to issue and trade in security tokens.
NASDAQ has also expressed the possibility of morphing into a crypto exchange. With so many high-level companies declaring an interest in cryptocurrency, it shows that trading in crypto is not only gaining momentum but also positioning itself to change the face of trading.
Why Tokens Are Rising
With blockchain, owning tokens is made possible as a result of the cryptographic security that is provided by this technology. There are no hang-ups about who owns which tokens as ownership is recorded on a public ledger that remains unchanged.
The blockchain is therefore a record that is permanent and secure.
Tokens Based on Blockchain
Just about all digital tokens qualify to be security tokens which are much like the conventional securities in assets such as shares, bonds and other investment outlets. When a security is tokenized, the asset can be divided up into smaller shares which can be purchased by everyone including retail investors.
This is not possible in many traditional investment forums. In addition, any physical asset you own can be tokenized. This ensures that investors have a wide range of investment opportunities available to them.
If you have ever been handed a coupon for use in your local stores, you understand perfectly how a coupon works. Think of a utility token as a digital token.
When an investor owns a utility token, they are in a position to use the asset attached to pay for services and goods that are provided by the outlet that sold that particular utility token. This encourages a direct relationship between the token owner and the company. The company must ensure that their product or services serve their community well.
Tokens are the future of cryptocurrency. With the offer of tokens as securities, even big corporations are taking notice as they have jumped onto the bandwagon thereby giving it a huge boost of confidence.
In addition, led by experienced professionals, things are done right. Investors in cryptocurrency will be able to take part in a wide range of investment opportunities while ensuring the security of their holdings on the blockchain by means of digital tokens.