April 20 2022
Top 5 Cryptocurrency Trends for 2019 – Part 2
This is the continuation for the Top 5 Cryptocurrency trends for 2019 (Our FIRST WRITE UP CAN BE SEEN HERE: Cryptocurrency Trends Part 1) :
3. Security Token Offerings or STO
When a lot of people have been calling 2019 the year of the STOs and that's because STOs solve a lot of the issues that were happening in the ICO space. Namely, what is the token used for? STOs allow companies that can issue STOs to directly give even percentages of their profits, the path their actual equity into and pack it into a security token and it fixes the problem that we have where we don't need to create a new token economy. As long as the company does well, it can generate profits, then that's going to be a profitable token and many others see it as a way to bring back the ICO market. Right, now we see this huge decline in ICO funding raised and kind of the collapse of the ICO market and fast money needs to come back somehow.
What we see right now is the ICO space flooding to the STO space. Just go in Linkedin search hashtag STO and you'll see ambassadors for STO exchanges, STO capital raising, and preparation, STO advisors coming in give 5K results for that. Then if it's so big, why is there a number three on my list? And that's because STOs have a lot of regulatory hurdles they need to overcome. Right now as it stands, if you want to trade an STO have fun listing on an STO exchange, because there is none and if you want people from the United States, from European Union, or trading with each other, that's going to be two regulations that you have to comply with together. And that's going to be absolute insanity. This is why I feel like right now, STOs as a stance to get that kind of crossing that barrier into regulatory compliance and even the fact that you have the security token if you want to sell it right now and you want to apply for Reg D exemption, you can only sell it to accredited investor.
It isn't going to be like this whole ICO craze. The fact that if there is security, they will be regulated as such. Countries like China have said, ‘nope bye-bye. No to security token offerings' and also lots of scamming STOs are going to happen too. Just be on the watch off for that.
This year I've been looking at a lot of gaming projects and we’ve seen something pretty amazing, which is CryptoKitties. CryptoKitties pretty much sold $12 million worth of kitties as a demo game. But the unfortunate part of a CryptoKitties is that it didn't manage to keep and retain a lot of players for the long run. If you look at daily active users for CryptoKitties, it kind of is below a thousand daily active users right now. That's not too good.
What can happen in 2019? Well, 2019 I feel like the gaming space, we'll move away from a pure CryptoKitty's model where it's very oriented towards kind of any players to make money. We need to have fun in gaming and it will take for the whole 2019 for gamers and developers to really realize, what kind of formula works for this space.
Are you excited for Number 1 Cryptocurrency Trends? Next week we will feature THE TOP and NUMBER 1 Cryptocurrency Trends for the year 2019! Please stay tuned