2017 was the year the world learned about crypto. 2018 was less eventful; a year of consolidation, legitimization, and conversation for the space. But although 2018 was a little slow, 2019 is about to have a dramatic impact on the crypto space and the projects therein.
Why?
Because in 2018, markets were quiet. Projects were busy developing thanks to all the money they raised in 2017. And now, a lot of the behind-the-scenes work that was invisible before is about to make a big impact.
In this article, we’ll cover 4 of the biggest trends you can expect this year.
A. STOs
Security tokens are digital assets that function as securities. They are essentially tokenized securities that pay dividends, share profits, represent ownership, and more.
So far, they haven’t been done in a regulation-compliant way - but several projects spent most of 2018 trying to make them real, hoping to make STOs (Securities Token Offerings) a reality.
One project that’s likely to make a splash with securities tokens is Polymath. This is an important step for crypto, both as a technology and as an asset class.
Why?
It means that institutions can on-chain trillions of dollars worth of assets, dwarfing what the crypto space has seen so far. This means a lot of money could be about to enter the space.
It means that crypto will be able to offer institutions and investors some very cool features. For example, imagine a smart contract that automatically pays out dividends, invests in specific vehicles, etc while being 100% digital. This is a value add for multiple reasons, which makes the idea of securitized tokens very exciting.
B. Institutional applications for crypto
2018 did more for crypto’s legitimacy and mass adoption than the previous 9 years combined.
To wit, cryptocurrencies saw over $277 million of institutional investment (direct and indirect). NASDAQ now has Bitcoin and Ethereum indices. Meanwhile, developers and advocates the world over are doing their best to make cryptocurrencies 100% legal everywhere.
In 2019, expect things to go even further. Specifically, look for corporations, large-cap investors, banks, researchers, and even governments and government agencies to get more involved with crypto, both as investors and as technology users.
C. Stablecoins
2019 won’t just be big for security tokens. It’s also poised to be a landmark year for stablecoins: tokens backed by real-life assets and/or stable prices.
The first reason is that big names are actively developing their own stablecoins. CoinBase, Facebook, and Telegram are just a few digital giants preparing to roll out their tokens in 2019.
The second reason is that there’s a clear market gap. Tether has made a lot of people skeptical and unhappy, and the time is right for a major industry disruption. Either way you look at it, there’s going to be a lot happening in the stablecoin space this year.
D. A possible bull run
The crypto space is known for high volatility, a.k.a. the wild price swings. 2018 was the year of the crypto crash - but if history is any indication, Bitcoin may be posed for another bull run.
We’re not saying that this is going to be a repeat of 2017, when Bitcoin’s price grew by 2,000%. But there’s certainly a strong chance of Bitcoin reaching $5,000 price level - especially as cryptocurrencies get even more institutional support.
After reading this article, you may feel optimistic about cryptocurrencies and their immediate future. If that’s the case, you may eventually decide to invest in a few in the near future.
That being the case, start building your cryptocurrency portfolio on CoinCola - your all-in-one cryptocurrency exchange platform. We only support legitimate, carefully curated major cryptocurrencies. If you’d like to learn more, visit our website at www.coincola.com for further information.
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