In late 2016, I was lucky enough to purchase Dash, and Ethereum for roughly $15 a token. I then watched as my investment easily eclipsed any investment I had previously made in the traditional stock market. Ethereum offered the most potential with its amazing ability to enable businesses to launch tokens within minutes on the Ethereum platform.
While I sold Ethereum too early, I did partake in many of the ICOs in 2017. While I enjoyed the returns offered by utility tokens there was clearly a mania to the bubble that made zero financial sense. Tokens would raise funds via an ICO, and overnight the tokens would double or triple in value. Often there was no business attached to the token, and nothing but an empty whitepaper selling a pipedream.
While I watched this bubble from the sidelines I could not help but wonder what purpose these tokens served other than offering liquidity and the potential to profit by reselling to the next investor.
The major problem was the lack of security, or governance.
For this reason, I became excited when Blockchain Capital launched the first security token in early 2017. This was the evolution in cryptocurrency that I was waiting for. The token by the name of BCAP raised $10,000,000. Unfortunately, over time it lost value as investors realized that no exchanges wanted to list BCAP due to fear of being on the wrong side of the SEC.
Nonetheless, over the past few month wise investors have been picking up BCAP. If you look now, BCAP is one of the few tokens that has not only retained its value since launching but has also increased in value. And this is with almost no where to trade the token with the exception of some decentralized exchanges such as EtherDelta.
Fast forward to 2018, and we are now in the future with Patrick Byrne of overstock.com having successfully completed an ICO for the TZero exchange.
This is an important milestone for many fundamental reasons. It gives security tokens the first regulated large-scale exchange to be listed on. Since the exchange is regulated it offers access to institutional investors who were formerly scared away by utility tokens which offered next to no utility, and even less accountability.
The second problem with security tokens, was the difficulty in launching them. Services like Polymath solve that part of the equation. Polymath easily enables anyone to launch a security token and they have been successful with assisting in launching 7 security tokens as of this writing.
This website was designed to solve another problem in the space. Until now there has been no dedicated resource for security token news, and listings of these types of tokens.
I’m excited that we will be on the ground floor of this next evolution in cryptocurrency. We will be offering news that is relevant to the industry, this includes information on exchanges, interesting projects, regulation, legislation, etc.