2 Months Ago

There has been considerable hype about how tokenising property will boost liquidity, as it will allow smaller investors access to this asset class which historically has been the preserve of institutions and the very wealthy.

Whether this is true or not, we will have to wait and see, but we are beginning to see different parts of the world tokenise property and slowly we are seeing more and more acceptance of the idea.

In France, a €6.5 million property in Boulogne (according to Forbes) is the first piece of Real Estate to be tokenised. The property was transferred to a joint stock company and held by 100 tokens, following which each token is then capable of being divided into 100,000 tokens. This means that, for as little as €6.50, one can own a fraction of the building. In the USA last year, a property in New York, valued at over $30 million, was tokenised and was touted, at the time, as being a way to finance property instead of relying on traditional banking arrangements.

Meanwhile, a company called ASA, based in Dubai, is looking to tokenise property in the UAE and Portugal. Also in Dubai, a company called Darico, has recently launched a service to help organisations tokenise assets, such as property, into tokens. 

So, one can see that a number of jurisdictions are looking at how property can be held in a different way and, while the promise of additional liquidity that tokenisation promises is yet to be seen, there are a number of other interesting benefits that tokenisation of assets offers. In essence, we are increasingly finding that economies are becoming more and more digital as this can offer greater transparency, stronger compliance monitoring and regulation, thus enabling engagement with people who are, themselves, more digitally savvy and reliant than previous generations.

 

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Real Estate
Tokens
The above question is often asked - now we think we can offer some guidance. Though not in the short term though!

So, why is this the case? Well, Binance - which is one of the world’s biggest Crypto exchange - has a turnover of over $1.5 billion worth of Digital Assets a day, and just announced (despite only 15% of its turnover coming from the USA) that as of September 2019, it will offer a separate Digital Asset exchange for US investors and another exchange for non-US investors. Therefore, it would appear that it is unlikely in the near future that it is going to be possible to have one global exchange that anyone, regardless of where they live, can trade on.

However, with a G20 meeting being held on June 28th  2019 in Osaka, Japan, Crypto-exchanges are on the agenda. Maybe we will see some clearer guidance being given about how Crypto exchanges are to be regulated going forward.

The Financial Action Task Force (FAFT), which is an intergovernmental body established in 1989, and which focuses on money laundering and terrorist financing, will be presenting its recommendations on how Crypto-exchanges ought to be regulated before the G20 meeting. Although, given the traceability and transparency that Blockchain technology offers and the fact that you can, in effect, programme-in checks and balances, could make FAFT obsolete! Such checks are impossible with the current largely paper-based analogue systems and platforms that we currently use, but will FAFT see it this way?

Furthermore, Binance has also been in the news recently announcing that it is going to launch a stablecoin, pegged to £ Sterling, called $BGBP. Binance believes that by offering this new £-backed Digital Asset, it will encourage more people into the Digital Asset sector.

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Crypto
Investing
Digital Assets

3 Months Ago

This podcast interview with the founder and CEO of eToro, Yoni Assia, is over 1 hr long, but it is worth listening to https://pod.link/1434060078.

eToro was only established in 2007 when Yoni and his brother thought there had to be a more user-friendly way for people to be able to buy and sell shares, currencies and other financial assets. They have achieved this by creating what they refer to as a “social market”. The eToro platform enables someone in Hong Kong to find an investor in Germany (that buys and sells German smaller companies) and then follows and automatically invests in these same companies in the same proportion. This type of ‘mirror-trading’ is also known as “copy trading” and has been popular for a number of years, being possible to do copy-trading with relatively small sums of capital. Typically, the person who is initiating the trading ideas and strategy will earn either a % of the profit (from the person who is mirroring the trade) or a % of any brokerage that is created.

However, I digress - what is also interesting in the podcast is that Yoni was involved in Colour Coins in 2014 which, in effect, were what we now refer to stablecoins i.e. Digital Assets pegged/linked to real assets - $, £, gold, etc. The Colour Coins were run on the Bitcoin Blockchain, as Ethereum did not yet exist. When he was only 19, Vitalik Buterin (Ethereum’s founder) helped Yoni with some of the initial codings for Colour Coins. Vitalik decided that digitising assets was a great idea, but the concept needed a new blockchain - so he invented Ethereum.

From 2015 to 2016, eToro grew by 600%, and then from 2017 to 2018 by a further 400% (according to this podcast). eToro has now become a very successful company, which has over 10 million clients who, in 2018, traded over $1 trillion worth of assets. Yoni believes that, in the same way Bitcoin has proved it can replace cash as a medium for people to trade, Smart Contracts has the ability to replace and totally disrupt the legal system. Smart Contracts can replace many intermediaries and allow computer/machine-driven execution of trades and agreements, which will be cheaper, faster and not prone to human error.

eToro has been offering the ability to trade Bitcoin for over 5 years and, during Cryptocurrencies’ bull-run in 2017/18 Ethereum went from $4 to over $350 and Ripple increased in value by over 35,000% in a year. This encouraged people to open accounts with eToro to such an extent, that eToro signed up over 20,000 new customers in a single DAY! Given eToro’s success in traditional and Digital markets, how much credence ought one pay to its CEO’s pronouncement, that financial markets are going to radically change? The combination of Digital Assets and Smart Contracts disintermediate the financial services sector and could result in 66% of the $150 Trillion global bonds and equities becoming digitised.

Certainly, younger investors are spending increasing amounts of their time online, usually on a mobile phone, and therefore to engage with them, financial service providers will need to communicate and offer services...


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Cryptocurrency
Investing
Digital Assets

6 Months Ago

Yet another university is investing capital into the Crypto sector as Michigan, as part of it’s $12Billion endowment fund decides to invest into the legendary Silicon Valley manager Andreesen Horowitiz.

Last autumn Harvard University disclosed it had invested  into a Cryptocurrency fund following Stanford and MIT.

The Horowitz fund targets Crypto related technology firms as opposed to just buying pure Crypto currency funds. With major highly respected universities such as these investing in Digital Asset this clearly demonstrates how traditional investors are increasingly looking at this new asset class.


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Cryptocurrency
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https://www.financemagnates.com/cryptocurrency/...ypto-fund/
Grayscale who hold 203,000 Bitcoins i.e. over 1% of the total circulating supply, in their 2018 report are still optimistic on Cryptocurrencies and say that over 66% of investments into their funds were from institutions.

Interestingly a lot of the institutions are investing cash/fiat and research from JP Morgan has calculated that the amplifier effect of cash on the Crypto sector could be as much as 1:117.5. To put this more simply $1million in cash has the impact of increasing the cryptocurrency market by as much as $117.5 million. As we see greater liquidity and money coming into Digital Assets the amplifier effect no doubt be smaller, but clearly in the short term, it is easy to see how relatively small sums of capital could drive up prices-. Unfortunately would this once again send the wrong message especially to smaller investors looking to make a quick buck?

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Cryptocurrency
Investing
https://www.newsbtc.com/2019/02/15/grayscale-se...ring-2018/

7 Months Ago

The Intercontinental Exchange (ICE) owns 23 global exchanges for financial commodity markets, including the New York Stock Exchange (NYSE).

They are launching a new service which will mean that ICE can offer real time as well as historical data on the price of 60 of the largest Cryptocurrencies. The product is called “CryptoFeed V3” and takes prices from thirty different sources, and will enable investors to monitor crypto prices in a way similar to how you can with other traded assets like bonds and equities. Another example of how the infrastructure is being built to make the trading of Digital Assets easier, prices more transparent and in real time.

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Cryptocurrency
Investing
https://bitcoinexchangeguide.com/ice-partners-w...king-tool/