What is especially important to have on the radar in the new year in the crypto world? We have identified eight different topics on which a lot will happen next year. Initial coin offerings are de facto dead. They are to be replaced by "security token offerings".
This article is part of a cooperation and was originally published on 10×10.ch
Legal foundations for raising capital are being created
Initial coin offers are de facto dead. They are to be replaced by Security Token Offerings, since their tokens are based on a legally sound basis. Industry experts are in good spirits and have interesting figures quoted. For example, that up to 50 percent of financing in 2020 will be provided by security tokens. Besides Ethereum, Liquid could play a decisive role here. The sidechain of Bitcoin could be discovered in the new year as a kind of swift system for Bitcoin.
The legal framework has not yet been finalized, so there is no need for hope to materialize. Liechtenstein offers a ray of hope: The Blockchain Act will be launched there in January 2020, which is intended to provide more clarity in the legal matters surrounding tokens. In Switzerland, too, the DLT bill is likely to go to parliament - and hopefully be adopted. This would provide a solid legal basis for the creation and transfer (the problem of writing) of security tokens, adapted to the digital age.
New business areas are opening up
Cryptobanks in particular are already looking at the new business areas created by security tokens, for example the distribution of these. Thus, due to KYC & AML requirements, regulated security tokens can only be subscribed by identified players. Security tokens can also be held without identification, but in this case the rights (voting or dividend rights) to the security token are waived. Ultimately, however, security token holders want to enjoy the rights, otherwise one would not want to hold a security token. Identification is therefore a deliberate must and will therefore be in great demand.
"Initial Exchange Offering" as an alternative
If you have a large number of identified customers and investors, you have the chance to play a leading role as a distribution platform. The Crypto Exchanges are also predestined for this. This is one of the reasons why some of them have raked in initial exchange offer capital in the course of 2019 to expand the share of identified customers for broader distribution. Conventional banks also have outstanding cards in this respect, after all they have an identified customer base that extends far beyond supporters from the crypto and blockchain world.
