With a small amount of long-awaited movement in the crypto markets, there is a genuine sentiment change amongst retail investors. In the world of FinTech, there are a lot of reasons to be excited about the space right now, but also some news that has us shaking our heads.
The QuadrigaCX debacle had us all questioning the maturity market, as another opportunity for the mainstream media to pounce on the mickey mouse professionalism of the crypto space. Over $190m worth of digital assets is no longer available to their owners because CEO of the exchange Gerald Cotton died in December without having a secondary plan in place for his private keys in the eventuality of his death.
Never mind Cotton made provisions in his will two weeks prior to feed his dogs if anything happened to him. Commentators also remark how easy it would be to fakes one’s death in India with bribes in the right places. In an industry where nefarious intent is still seen as the default it is not a good look and until this kind of behaviour is eradicated, those in traditional finance will continue to see Crypto as an upstart.
On the other side of the coin, World First – a foreign exchange specialist, abruptly shut down US operations this week to facilitate their acquisition by Ant Financial – arguably the world’s biggest FinTech company. This is interesting on two counts – As mentioned previously global remittance with minimal fees is a primary use case of digital assets. Ant Financial is owned by Alibaba, who interestingly own over 10% of existing blockchain patents – the most by any single entity. The Chinese are looking to enter the impending trade war with the United States from a position of great technological strength – as they continue their march, we can expect to see continued shutdowns of US components of global entities.
In a fantastic development for the credibility of the asset class, the SEC has asked for help to analyse blockchain data. There are already tools from Elliptic and Chainalysis which a multitude of exchanges and enforcement bodies already use to track Bitcoin, however this development indicates the SEC is viewing this nascent market with true potential and my estimation is that these tools will need to be in place before trading of Securities on the blockchain really picks up steam. This is very bullish news for the industry as a whole as it will validate the asset class as well as provide thousands of new jobs in blockchain analysis and regulation.
To round off this weeks news, premier Swiss stock exchange SIX plan to launch their own STO in H2 of 2019. Based out of Zurich with a market cap of over $1.6 Trillion and originating in 1890, this demonstrates the old world of finance utilising the new. SIX also plan on tokenising all traditional securities and trading on their own platform later this year. With Baakt coming online in a few months, this year may shape up to be the most important in Crypto yet and we are all very lucky to be a part of it.
Nakameowdough has only known about Crypto since late 2017. As soon as he heard about it from a trusted source, he spent the next 14 months with his head buried in books on the subject or listening to a multitude of podcasts.
This dedicated self-development allowed him to pivot from a career in I.T. towards FinTech and he now works with one of the most exciting companies in London, the FinTech hub of the world.
His position within that company affords him the benefit of working with highly innovative businesses and facing the challenges of integrating exciting solutions, with old systems.You can reach Nakameowdough on Twitter
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