If 2017 was the year of the ICOs, is 2018, the year of the Security Token. This is in contrast to classical Utility Sales Token more security for the investors and shall be subject to, at least partially, with regulatory oversight. The American crypto-exchange, Coinbase will now grow vigorously in this market.
Coinbase is one of the largest and best-known platforms for crypto-currencies. Now the American company wants to take over three financial service providers in the area of Security Token into the business. Specifically, according to a company spokesperson, to Keystone Capital, Venovate Marketplace and Digital Wealth. The competent regulatory and Supervisory authorities with Coinbase and now the green light for the Acquisition. Coinbase receives with the Acquisition of the companies also licenses as a Broker, a provider of alternative trading systems (over-the-counter trading) and as an investment adviser. In particular, the authorization for the operation of alternative trading systems facilitates Coinbase the establishment of a trading venue for a Security Token.
The crypto exchange of the San Francisco diversifies with the Acquisitions your business model. The competition of trading platforms is hard and the margins will decrease increasingly, because more competitors enter the market. The extension to new fields of business, promises the investors and the company founders also, in the future, lucrative margins and sustained competitiveness. The trading of securities as a Security Token is, as yet, undeveloped. There are no trading places explicitly for a Security Token.
Security Token as a cost-effective Alternative to stock exchanges
Coinbase, with some 20 million active users, sets a foot in the door of a potentially billion-dollar market. In contrast to Utility Token be subject to the Security Token, although a regulation, but the authorities accepted. The advantages of over traditional stocks: investors can trade the tokens easier, cheaper, and faster than securities on a stock exchange. For company Security tokens offer an enormous cost advantage: Are IPOs accompanied by numerous advisers to the extremely high hourly rates, Security Token, slimmer and cheaper to implement. The SMEs (small and medium-sized enterprises), the gang were far too small for a stock exchange, thus in the future, access to an investor Pool. This was previously denied. It benefits both sides so that both investors as well as companies of a regulated Security Token.
Coinbase is almost US $ 8 billion value
The value of the Coinbase is grown year-on-year. As the crypto-exchange collected last year, $ 100 million from investors, reached Coinbase is a valuation of around $ 1.6 billion. In the meantime, about a year after that, tax analysts the company at around 8 billion US dollars.
The success of the ICOs in the last few months, in Spite of the Utility are Token under a strong regulatory pressure. This year alone, it collected the company of over 12 billion U.S. dollars over the Initial Coin Offerings. The Problem is The legal uncertainty. Many of these Token Sales move in an unregulated grey area. In the worst case, some Token of the courts be prohibited and worthless. Increasingly, Start-ups in their White Papers on the risk. The US securities and exchange Commission already has made recently clear that most of the tokens of the same according to their function, rather, of a value of paper.
Only on Friday published Coinbase, a Declaration of intent, five more Coins into the Trading. In view of the number of globally tradable Coins, the number sounds low. Coinbase currently lists, however, only a total of four Cryptocurrencies: Bitcoin, Bitcoin, Cash, Ethereum and Litecoin. In the future, could now Cardano, Basic Attention Token, Stellar, Zcash and 0x are added.
According to media reports, Coinbase itself is aiming for an “IPO” in the next year. As this is true, whether or not a classic stock exchange or as a Security Token, it remains to be seen.