Some assumed that cryptocurrencies would be a fashion that would come and go quickly. But in a short time we saw the origin of cryptocurrency become a hub for new innovations. Cryptocurrency offers exchange of value, the opportunity to generate income and a viable investment alternative. Young companies are moving away from traditional venture capital to offer investors symbolic options. Blockchain technology provides new value in the form of seamless data exchange. As a result, cryptography has an increasing impact on the global economy, technology and culture.
For this reason, cryptoassets have become a fully institutionalized asset class, which can only be a good thing. Improved purchases from investors, brokers, financial service companies, etc. Can improve the visibility of cryptocurrencies and markets in general. Wider participation also increases the efficiency and stability of cryptoassets.
Institutionalization will also lead to growth in the financial services sector for cryptocurrencies, not only in brokerage and management, but also in areas such as insurance and accounting. Recognizing that cryptoassets represent a valuable investment opportunity will encourage more startups to implement ICOs and increase the issuance of tokens as new viable options for stakeholders. As the understanding and legalization of cryptocurrencies grows, more and more industries will use blockchain technology.
In other words, the more cryptocurrencies you can use, invest, trust and rate as valuable, the better.
Promote cryptocurrencies by providing more and more information
But we have not reached that point yet, and we will not be able to reach that point until the industry removes the most important obstacle to institutionalization: lack of information in the form of information coverage.
Currently, there are no rules or regulations that oblige companies that issue cryptoassets to be held liable, which means that companies can (and have already issued) ICOs and disappeared. Information spreads across the Internet without collecting or verifying, so valuation remains a mystery. How can a secondary market become resilient if information remains private, even when trading becomes public, creating huge information asymmetries among investors, widening the gap between “insiders” who always win and “outsiders” who always lose?
Going to the next stage of code maturity requires global company records, which will ultimately provide transparency in the company’s assessment and actions.
What will it look like? It can be a simple information service that collects, verifies and disseminates information from companies around the world that have issued cryptoassets, and can also serve as a standard for information information. The US Securities and Exchange Commission’s EDGAR database – its electronic data collection, analysis and recovery system – already does this by indexing companies’ publications and making them publicly available.
Disclosure of information about cryptocurrencies will bring a number of benefits:
This is good for the organizers. Traditionally, the coding ecosystem operates independently of governments and institutions, but a lack of regulation leads to a lack of standards, which is detrimental to future growth. Regulators are already working on disclosure, letting them know how to handle crypto projects, so it’s an easy way to use the same structure to evaluate a project.
This is good for evaluation. Disclosure will also help determine the best value for cryptocurrencies so that investors can make informed decisions about where to place their money. An asset value identification system will also improve the resilience of crypto asset classes, which can only facilitate broader adoption. Simple regulation, increased involvement in new projects, improved investor relations and further benchmarking are the steps required to fully institutionalize cryptography, all with the creation and certification of a global business register.
This is good for new projects. Having global experience with companies that reveal what they are working on, enables the industry to be aware of good projects under development, and gives investors at an early stage transparency about projects they can support. In the same way, red flags can be hoisted for fake projects.
This is good for IR. Providing an accurate overview of what is happening in the company, including milestones, management changes and releases, will only help build relationships with investors. And when cryptocurrencies become a new industry, disclosure can convince investors that they will not be left in the dark or in trouble.