EconomyRegulated “everything” is inevitable?

When the regulators’ hammer comes down, you’d want to be on the right side
Benjamin RyuDecember 10, 20187 min
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It seems like it was just yesterday when cryptocurrency promoters shunned the government on all counts. To them, the government couldn’t be trusted to run money and money (i.e. Bitcoin) should be private. Fast forward to almost 10 years later, since the inception of Bitcoin, the masses are now begging for government intervention – the latest being SEC’s approval of a Bitcoin ETF. It can’t get more ironic than this!

 

People are tired of scams

For weeks and months now, pundits have openly published their views for the end of cryptocurrency as we know it. Indeed, it may quite seem like it; as cryptocurrencies shed more than 90% of their value. As if that wasn’t enough for crypto investors – more and more projects have been going BUST, leaving investors in shock especially when these projects claim to have raised tens of millions of dollars.

It’s one thing if your token value has gone down, but another when you know you have ZERO chance in recovering any value as the company behind the project went bust due to mismanagement. What went wrong? Well, to start with, they are usually not properly managed, nor financially wise. Personally, we have encountered with companies who splurged on events, parties and roadshows without a proper business model figured out. That’s right, no revenue plans in the “near future”. WTF, right?

Can these companies be labelled as SCAM? Probably, since many do not intend to delivery on their business plans anyway. People are definitely looking forward towards the day when regulators step in and regulate the space. But for now, it’s still a wild west.

 

Regulated exchanges

We’ve seen a lot in 2018, in terms of regulated products. Exchanges are one, and another would be stablecoins. The people were hoping for an ETF, but it doesn’t seem like it’s going to happen in 2018 now.

Perhaps liberals may be all up in rage now that the “government” wants to come in and regulate the crypto industry – but if they hold any of these regulated assets, they can be thankful that their asses are covered; incase the CEO of the companies decides to take the company money and gamble it away at a Bitcoin casino. The biggest crypto exchanges may not be fully regulated or compliant with the regulators’ wishes yet, but we see it changing in the nearest time.

Whichever way this is put (good or bad), that’s not the argument for today. We see regulations and “regulated” products or services as a potentially HUGE profit opportunity. For one, the entry of institutional money has to be through these regulated services. So, laugh all you want that regulated services are slow to the game, or have to spend tonnes on compliance; for when the regulators’ hammer drops, all others could probably be forced out of business if they didn’t comply with the authorities.

 

The future

Speed to market may have been the “thing” in 2017 and 2018. However, now, the market and investors see that staying power is more important. Of course, staying power is impacted by project’s profitability as well as its ability to continue staying in business. We all know that if the governments of the world decided to put a stop to cryptocurrencies, they can infact institute a blanket ban. However, they are playing the patient game because this space is creating jobs and opportunities which in years to come, experts believe, could be bigger than the current internet ecosystem itself.

Smart projects, such as Quoine (Liquid.com/Qash), Ripple, and only a handful now (unfortunately), could gain the upper hand eventually for being regulator friendly. There’s little doubt they have invested massively into gaining the trust of regulators and project an air of trust; to the point even Ripple had invited former US president, Bill Clinton to speak in their event. Yes, they might be criticized for being slow, but they have the staying power and the backing of regulators. It’s your call finally – but we think regulations are here to stay.

Cover photo by: bitcoinist

Benjamin Ryu

Experienced in the technology and blockchain startups ecosystem, Benjamin honed his skills in the growth and operational development of many organizations. An huge fan of blockchain technology and its applications, he spends his time both investing and advising into blockchain projects and scalable development.

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