This time around is the perfect moment to consider what this year holds with the reflection of the events held in 2018.
There is bear as well as bull market that the cryptomarket faced.
With the crypto hype, it is easy to forget that blockchain technology continues to hold much promise.
While the prices of cryptocurrencies and cryptoassets have fallen from their 2017 peaks, equity investment into blockchain startups is on pace to hit all-time highs in 2018.
The companies are still flush with cash from 2017’s ICO boom, cryptocurrency price run-up, and venture capital investment — and are spending it.
In other words, while the speculative hype is gone from the market, engineers are building, teams are forming, and development is continuing apace.
The Major Trends:
1. The Arrival Of Security Tokens:
Along with 2018, the utility token market saw a slowdown, there has been dull situation in industries on the arrival of security tokens.
But this is for good reason.
The Market have waited a lot for big entrance of institutional Investors . But they have not entered the market yet.
Utility Tokens offering usability is still not substantial enough for investors, who buy stakes in companies.
Entering of security tokens comes with the familiarity of the IPO world.
That coupled with the benefits of blockchain is an offering that promises to redefine the IPO business.
The Idea of Programmable equity has brought lots of possibilities of efficiency and immense liquidity at lower cost Coupled with access to global pools of capital.
2. Move From Crypto [to To Digital assets:
There are several indicators pointing towards the possibility of a global slowdown especially in the equity and bond markets in the year of 2019.
As the investors are looking for the lookout for alternative asset classes.
It supports the immense possibilities of liquidity.
With the developing market for security tokens but there is tokenization of well-performing assets that previously lacked liquidity.
Consider Real Estate Assets and healthy Small-Medium Enterprises (SMEs), that tend to have strong returns, but it lacks wide market access.
While they cannot afford public market listing ,
But accessing to global market of investors can provide an infusion of capital that could help their business
Over 90% of companies in operation globally listed as SMEs, the potential for growth is significant for these companies .
3. Creating Decentralised Ecosystem Platforms and new business models
There is creation of Business to Business ecosystems that later facilitates the industries to develop the B2B2C i.e business to business and business to Customer ecosyestem.
A study of McKinsey from 2017 reported the importance of ecosystems in the future, suggesting that new ecosystems would emerge in place of many traditional industries with over $50 trillion in revenue by 2025.
Not unlike e-commerce in the nineties, the vast potential for growth and disruption with decentralized P2P ecosystems is yet to be discovered.
The learnings from unproductive experiments open gates for more progress in 2019, with innovative in new decentralised ecosystems being developed by the end of 2019.
4. Governments will push for more regulations:
As blockchain technology is evolving and the private sector is coming up with innovative applications at a rapid pace, regulators are under pressure to catch up.
Governments around the world, especially in blockchain-friendly countries, are working on improved industry regulations.
In 2019, Liechtenstein will introduce the Blockchain Act.
This is the first attempt to create a comprehensive legal framework for the blockchain industry, regulating everything from crypto trading to ICOs.
Japan has established a think tank to work out an approach to regulating blockchain businesses, and in the US the SEC is tightening controls of crypto trading.
Regulators will especially look at the intersection with financial institutions and adaption of AML and KYC rules.
Regulation of crypto exchanges, crypto taxation rules, and ICO fundraising regulations will be looked at as well.
However, it takes time for governments to introduce new regulations.
Apart from Liechtenstein’s Blockchain Act, there won’t be any major breakthroughs in this year.
But we will certainly see more movement in the regulatory space, with governments getting more and more involved.
That could be a good thing, or not, we shall see.
5. Hybrid Models:
It is widely accepted that blockchain is here to stay. (link of article).
Even as the technology turns towards the disillusionment on Gartner’s hype cycle, comes the investment in greater regulatory clarity and technology development.
At the end of 2018, blockchain remains the darling of the tech-savvy, but is still perceived as a vague.
Blockchain do not quite understood to everyone although its master those who want to get into it.
There are also new entrant to the tech conservative.
The true winners of 2019 will be companies that are able to bridge the crypto and fiat worlds, enabling digital links between the two.
This linkage is a necessity across industries, from storage, trading, asset management of digital assets to real world applications of technology.
The end of 2018 also marks the end of the Hype which crypto world got , and we welcome the next phase of development of digital assets as we move up the enlightenment and toward the level of productivity.
6. FLUSH WITH CASH, CRYPTO COMPANIES ARE TURNING INTO MONEY MANAGERS, VENTURE INVESTORS, AND ACQUIRERS
Many of the profitable and well funded blockchain companies have profited from just speculation, but not use .
These include exchanges, like Binance and Coinbase, or base-layer protocols, like Ethereum.
These companies made lots of money as a result of 2017’s hype of Crypto Currencies .
Now, The companies are placing venture capital bets, going on shopping or building “ecosystem funds.” All are trying to find use cases and users for them .
Exchanges are aware of the speculation, and are looking for real use cases through venture investment.
Coinbase recently launched its own venture arm, Coinbase Ventures.
In early May, Huobi — a popular Chinese exchange — announced a $1B fund to develop the blockchain ecosystem in Asian.
Binance — the largest exchange by volume — also announced of $15M for the Bermuda blockchain ecosystem by Binance .
7. Enhanced crypto market accessibility for retail traders:
So far, most retail investors have shied away from the crypto space.
Cryptocurrencies have a reputation problem and the volatility of the market can be
Thus, investing in cryptocurrencies is still a niche area, largely occupied by more sophisticated and institutional investors.
Actively managed crypto hedge funds are for the most part not interesting for retail investors either, because minimum investments and performance fees are too high.
In 2018, there have been attempts for the launch of crypto ETFs.
Many companies have lobbied the financial market authorities on behalf of their crypto ETFs, but so far, all of these attempts have been rejected.
Analysts anticipate, that it is likely that the first crypto ETF will be approved in Q1 2019.
Once that happens, the door will be open for more ETFs to come.
This will contribute to the adoption of crypto trading.
ETFs will increase the accessibility of the asset class for retail investors and create a more liquid and diversified market place.
Altogether, we are in for an exciting year 2019. The technology has enormous potential, and we are just at the beginning.
Watch these five trends. Blockchain is fast and furious, things are happening, and they are happening at a rapid pace.
Speculators aside, industry experts knew the Wild West of Crypto was only a transitionary phase, and as it draws towards its close, the time has come to focus on holistic, sustainable growth with real, tangible benefits.