There is not a day that goes by without some exiting news or announcement in the crypto market, which makes it one of the most interesting business segments to be involved in at the present time. Cryptocurrencies have continued to divide players in the banking sector as well as the corporate world. Some of the big players in the digital world such as Google, Facebook and Twitter have even banned all advertising of bitcoin and ICOs (Initial Coin Offerings).
Recent events in the industry
The fall in the value of bitcoin in recent months could explain some of these moves, making BTC more volatile than ever. On the other hand, other financial actors, corporations and even countries are more optimistic about the benefit of cryptocurrencies. Nevertheless, the common denominator seems to be the level of confidence to be accorded in these new currencies.
Bitcoin and other cryptocurrencies are trying to get rid of their image associated with dubious business activities. The volatility of Bitcoin, its involvement in money laundering or cyber-attacks such as the one perpetrated by DD4BC in 2016 ( a group responsible for DDoS attacks, the most famous being the one targeting Ashley Madison’s customers of the adult site to extort money from them), all this had contributed to the public opinion associating cryptocurrencies with illegal activities.
Financial institutions adopting cryptocurrencies
But this is the past. Let’s have a look at the future now. From now on the main financial institutions do not seem to be against cryptocurrencies, but rather envision a prudent participation. Especially since some regulatory bodies have come to regulate this new market, so that cryptocurrencies benefit from greater transparency to improve confidence.
For example, last March Barclays Bank announced a partnership with a major cryptocurrency company, to facilitate payments in Bitcoin, Ethereum and Litecoin, the most renowned assets in the cryptosphere. This shows a real shift in their approach making these assets more accessible to new investors.
Thus, to align with the regulatory framework in place, various market players backed by the largest venture capitalists in Silicon Valley have spent hundreds of thousands of dollars in legal fees. Recent ICOs remain one of the keys of this success and trust is building up.
More and more major regulators, such as FINMA and the Gibraltar Financial Services Commission, are innovating by providing advice and frameworks to companies seeking to produce an ICO, while at the same time ensuring to make it responsible and effective.
Opportunities in the crypto space
Small investors, who could be put off by the share price of giants such as Amazon or Facebook, can thus create great opportunities with ICOs, by accessing an initial offer or when the currency comes to be listed on the organized exchanges.
In addition, a large number of companies are now specializing in the Bitcoin blockchain to ensure its transparency: they will allow their customers to determine if a currency has already been used in potential illegal transactions on the dark web. This makes the difference with new entrants in the market who want to invest in the currency and find more confidence in this type of transactions.
The ICO industry may still seem unstructured, yet it is experiencing the beginnings of what will be a transformative asset class. A recent report by JP Morgan explains that the path to the blockchain is likely to be long with an uncertain outcome. Nevertheless, the study shows that a consensus is emerging around the fact that cryptocurrencies are definitely in place, and ignoring them would be equivalent to taking the risk of missing a great opportunity.
The future of cryptocurrencies
It is a safe bet that the number of new investors in cryptocurrency and crypto related assets will increase with the maturity of this market and the technological catch-up made by the different regulatory authorities, but also with the change in the state of mind of the big banks that will gradually take a more open position thanks to more transparency on transactions.
The cryptocurrency movement is not about to disappear and has great potential for brands, companies and financial institutions in the future. Cryptocurrencies and ICOs are here for the long term and trust in them will keep on improving over time.