Some people predicted that crypto assets were going to be a fad that would quickly come and go. But in just a short time, we’ve seen crypto assets become the focus of new innovation. Cryptocurrencies have offered value exchange, the ability to generate income, and a viable investment option. Young companies are turning away from traditional VC to offer token options to investors. And blockchain technology is offering new value in the form of frictionless data exchange. As a result, crypto is making an ever-expanding effect on global economies, technology and culture.
Because of this, crypto assets are becoming a fully institutionalized asset class, which can only be a good thing. Scaled buy-in from investors, brokers, financial services companies and more can only improve the recognition of crypto assets and markets as a whole. Greater participation creates greater efficiency and stability of crypto assets as well.
Institutionalization will also grow the crypto assets financial services sector, and not just in brokerage and management, but in areas such as insurance and accounting as well. Recognizing that crypto assets are a valuable investment opportunity will encourage more startups to issue initial coin offerings and grow token issuance as viable new options for stakeholders. As crypto becomes better understood and legitimized, more industries will adopt blockchain technology.
In other words, the sooner crypto assets can be utilized, invested in, trusted, and seen as valuable, the better.
Pushing crypto forward with better and more information
But we’re not there yet, and we can’t reach that point until the industry solves its major hurdle to institutionalization: lack of information in the form of disclosures.
Right now, there are no regulations or systems holding companies that issue crypto assets accountable, which means companies can (and have) issued ICOs and disappeared. Information that does exist is scattered throughout the internet uncollected and…