Charles Hoskinson, CEO of IOHK – the squad leading up development on the Cardano blockchain – and one of the original founders and alum of Ethereum, believes a really bright future for cryptocurrencies as he feels a lot of equity and traditional investors would start moving their monies from equity to cryptocurrencies.
What's often missed by the cryptocurrency is going to die broken record media is that after the next wave of regulation, wall street is showing up to the party with all their locked up capital. That's tens of trillions of dollars entering the space eventually. Future is bright
— Charles Hoskinson (@IOHK_Charles) June 21, 2018
Regulations hold key
While Hoskinson’s statement is well received, a lot of this growth would have to be around as the regulations in major countries especially the US phases out. The SEC, the market players and investors still await major regulatory approvals and guidelines but at least positivity and interest for cryptos are growing.
The banks are still awaiting but other market players like Hedge funds and asset managers are not looking to maintain a secure hardware wallet — they are waiting to trade in a full-fledged manner through firms like Goldman Sachs that will extend them credit, offer them research and technology, and clear and settle trades using the firm’s traditional back-office systems. Goldman Sachs has been public about entering the market this summer, but JPMorgan, Barclays, and others have all signalled interest in getting a crypto desk up and running by the end of the year.
Not just investors, Exchanges such as Nasdaq and NYSE have said they are interested in participating when the regulatory regime is better defined. With SEC scrutiny, ICOs have been forced to professionalize and be more investor-friendly then just scams or loose instruments to raise capital. Law and accounting firm like the Big Four accounting groups, FINRA-registered bank broker-dealers, and SEC-regulated ATSs, have all entered the market to bless these ICOs as legitimate private placement offerings.
And while this is all very exciting for finance professionals, it is far from a future free of gatekeepers that crypto-enthusiasts like Hoskinson are envisioning.
Hoskinson’s statement doesn’t look a wild guess
Hoskinson statement comes at the time when SEC has been working on creating guidelines and regulations around cryptos. There is a news every day mostly in favour of cryptos which is keeping everyone bullish and Hoskinson has always had a bullish approach to cryptos and blockchain. He once had described cryptocurrencies as possibly the “greatest invention of the last 500 to 1000 years” and “likely to become the leading mainstream currency by 2030.”
Many people associated with cryptos as investors or business owners would agree with Hoskinson that when and if crypto breaks into trillion dollar territory, it will likely be the result of Wall Street’s entry into the market and also that will largely be dependent on regulators – primarily in the US but elsewhere as well
Will Wall Street money actually turn towards Crypto Markets as predicted by Hoskinson? Do let us know your views on the same.
Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.