Most Notable Bitcoin and Blockchain Asset Trends in the Cryptosphere for 2019
- There have been reports recently of an increase in the number of institutional investors in the crypto space.
- There have also been an increasing number of security token offerings (STOs).
Crypto Market Has Seen Increased Attention from Institutions
The cryptocurrency market is an emerging, nascent market that changes every single day. This growth of the crypto market into mainstream validation, popularity and adoption means that crypto businesses explore more ways to attract both existing and would-be investors, both small scale individual investors and large scale institutional investors.
With the rapid changes happening in this extremely volatile market, it might be hard to keep abreast with each change. So here are some top trends this year to watch out for.
From ICO To STO, Now IEO
The ICO (Initial Coin Offering) frenzy was one of the major factors of the 2017 cryptocurrency bull run. This initial coin offering was a simple way by which tech startup projects get crowdfunded and investors get in at the base of promising projects.
This seemed like a good deal, however, the SEC (Securities and Exchange Commission) tagged all assets from such crowdfunding as securities, which drastically dropped the whole ICO craze.
ICO Vs STO
As the ICO frenzy reduced, its seemed like the Security Token Offering (STO) would be an ideal replacement. STOs acts as a contract for investors into an asset, contrary to ICOs which did not give investors any part of the asset asides the token.
The cryptocurrency market has since then moved to Initial Exchange Offering (IEO), with this, startup projects gets support from exchanges, which aid in increasing the projects popularity as well as raise funds.
This opens more doors of opportunities in terms of investors, for businesses by the validation of the exchange that hosts the IEO.
In recent weeks these Initial Exchange Offerings have done quite well for investors, notable ones include Matic Network and BitTorrent Token, which have done well since their inception.
This IEO trend would continue to grow as far as investors still seek out easy profits by investing in these coins and exchange platforms still develop infrastructure for the launching of these coins on their exchange.
The Short Selling Trading Technique
Bitcoin (BTC) was the cryptocurrency investors rallied to in 2016, waiting and hoping for growth in the long run, but as the 2018 bear run of the Bitcoin (BTC) market emerged, traders and investors began to understand what ‘short-selling' means.
This is basically an investment or trading strategy. Short selling occurs when an investor buys an asset , sells it on the open market, and expects to buy it back later for less money.
This trading strategy which is now a very common trend among traders in the cryptosphere allows them to benefit from whichever way the market is going, either surging, dipping or even trading sideways.
Traders no longer have to wait for a ‘perfect' time to buy or sell, because as we all know in the extremely volatile crypto market, there is no perfect time to either buy or sell, so traders have turned to short-selling.
Short-selling is a very risky trading technique so traders seek the most advanced trading tools for this, one notable cryptocurrency exchange that offers such tools is PrimeXBT, who's features include:
- Margin Trading
- Short Selling
- Customizable User interface
- Leveraging up to 1000 times, across crypto, stock indices, forex, commodities all from a single Bitcoin based account.
Exchange Traded Funds (ETF)
Exchange traded funds (ETF) have become increasingly popular as a form of investment due to its low fees, safety and stability of returns.
This form of investment is particularly attractive to institutional investors because it reduces the need to have direct involvement in the asset in terms of trading or storing.
News of the Bitcoin based ETF has caused a lot of frenzy in the cryptosphere within last year, however, the SEC has stalled the approval of any such ETF, in spite of proposals from CBOE, the Winklevoss twins and VanEck.
ETFs On Smartphones
Notwithstanding, the Cryptocurrency industry still moves towards launching of ETFs, as mobile applications which offer exposure to cryptocurrency are now bridging the gap between the crypto market and the conventional financial system through ETFs. A cryptocurrency purchasing application, Abra, now offers users a way to invest in Bitcoin-tied contracts for stocks.
As the top coins continue to grow in adoption and popularity, a subset of digital currencies are beginning to emerge which have a one to one ratio (1:1) with fiat currencies which helps in the stability of these coins in the highly volatile cryptocurrency market, hence the name ‘stablecoin‘.
For example Investors who expect the Bitcoin (BTC) market to drop, trade in their stored BTC for a stablecoin in order to reduce loss incase of a drastic drop in the value of BTC.
The most popular of these stablecoins is Tether (USDT) which is pegged to a dollar.
However, Tether had some ‘bad press' due to its association with Bitfinex.
This mistrust in USDT gave way for the rise of other stablecoins to gain ground in the crypto market. Such as:
and a host of others.
This stablecoins are quickly becoming digital versions of the USD, which somewhat secures a future for themselves.