In 2007, the titans of Wall Street, through a combination of greed, lack of ethics, and lack of transparency, crashed the world economy. The crash was so bad that it destroyed two historic Wall Street trading houses, Bear Stearns and Lehman Brothers, and caused widespread fear that we might be entering another great depression like the one in the 1930s.
It was only through a huge influx of government money that that crisis was averted and a few regulatory band-aids were applied to the financial system. Now, more than ten years after the fact, the stock market is at near all-time-highs and most of the same people and institutions who were behind the last financial crisis are riding high. Unfortunately, their methods haven’t changed. The current market bull run is being fed by the same greed, lack of ethics, and lack of transparency as the last time, and the risk of another global financial crisis is very high.
Countering New York Dominance of the Financial Markets
Unlike the last time, though, the rise of cryptocurrencies like Bitcoin and Ether have given us other options. Bitcoin is a trustless, internet-based, borderless currency that relies on code and not government policy for its soundness. Ether allows for the creation of digital, borderless securities that likewise rely on code and not the shenanigans of Wall Street financial institution for the security of its … well … securities.
And on top of these innovations, there are those who are building out the infrastructure of this new, digital, global economy. One such is NYDAX, a digital currency exchange that in addition to the buying and selling of cryptocurrencies is also aiming to be a platform for the creation and trading of a wide variety of digital securities. NYDAX expects the security token market to continue to rapidly evolve, and in the medium term will be seeking to tokenise a number of digital assets globally, including real estate and intellectual property.
NYDAX has been in development for a couple of years, and their exchange has just opened as of this July. Currently, BTC, ETH, TRX, and their own INVO token are available to be traded. More utility tokens are expected to be listed throughout the second half of this calendar year.
Claiming that this exchange will threaten the dominance of Wall Street powerhouses like Goldman and JPMorgan seems a little ambitious at the moment, but that high goal is built into the name of the exchange itself: New York Digital Asset Exchange.
Of course, in order to achieve this goal, the exchange will need to play nice with regulatory agencies, and according to their timeline, they began applying licenses in different jurisdictions in Q1 of this year. As of this moment, they have secured an Estonian permit with several more ongoing.
Fixing the ICO Craze
In 2018, the crypto industry developed its own black eye with the ICO craze. When it was discovered that people could create tokens and fundraise for nearly any project, all of a sudden everyone and their brother were creating their own tokens. The vast majority of those tokens have already evaporated into the thin air out of which they were created.
It’s unfortunate, but that craze, full of hype and fraud, was likely a necessary phase. ICOs are much rarer now and when they do occur, investors take a much harder look at the quality of the tokens being offered. And this is exactly where we need to be. The ICOs of 2018 proved that they are a viable fundraising method, and now we are at the stage where they can be used to fundraise for viable, valuable products.
And after building out its exchange, NYDAX aims becoming the go-to platform for creating and trading tokens securitizing everything from intellectual property to fractionally-owned real estate.
Just as cryptocurrencies are going to slowly become the trusted method of value exchange, STO tokens will become the owning, trading, and benefiting from securities.
Currently, NYDAX is offering 25 dollars’ worth of their INVO token to anyone who verifies their identity via their Exchange. It might be a good place to get in on the ground floor.
Visit them here: https://www.nydax.com/index.html