"My long-term view is selling crypto now is like selling Apple in 2001…
"If you're into this technology, you're like, why hasn't everybody moved on to this technology? It's an endless opportunity to move things on to the blockchain. You have an insane amount of very smart people who are envisioning this future and trying to build products for it."
So while some financial titans like Warren Buffett -- Who called Bitcoin “rat poison squared” that didn’t produce anything -- are quick to write off crypto as a fad, others are moving forward and preparing for the next big wave.
For many, that is security tokens. As Anthony Pompliano lays out in his guide on the subject, security tokens are applying new ideas to old standards:
“Security Tokens are digital assets subject to federal security regulations. In layman terms, they are the intersection of digital assets (tokens) with traditional financial products — a new technology improving old things.
If cryptocurrencies like Bitcoin are considered “programmable money,” then you can consider Security Tokens a version of “programmable ownership.” This means that any asset with ownership can and will be tokenized (public & private equities, debt, real estate, etc).”
It is this idea that has many saying we are on the verge of a security token rush, or a “tsunami” according to Lou Kerner at CryptoOracle. According to his recent look at the future of security tokens, finance experts are ditching Wall Street to move to crypto. They see a field full of the best and brightest, working on technology that could change billions of lives as it grows. Startups for all types of services, goods, and technologies have sprung up thanks to crypto.
Of course, there is the idea that folks could end up making a lot of money. That’s not going anywhere. However, behind it are thinkers and dreamers who see a path to help others in a way that wasn’t possible before, and a community that is waiting to join in.
Security tokens are a new frontier. They have regulations and a backbone in place from years of financial evolution, but they’re also able to expand the liquidity of capital with the investment of private assets towards virtually anything. As Kerner says, Tokens represent a future for securities innovation that we’re just beginning to tap into:
“For the first time in history, with the digitization of securities and the use of smart contracts, securities innovation is only limited by our imagination
A great fintech innovation example is Bancor, an algorithmic market maker, taking friction out of the marketplace, and enabling a breadth of liquidity previously unfathomable.
Early STO’s are simply taking existing securities, and digitizing them, similar to the early days of TV, which were simply guys doing radio on television, not taking advantage of the innovation the new medium afforded.”
He also mentions ideas like fractional ownership, a concept that has been around for over 50 years, and how tokens can open the design to allow holders to own a piece “songs, movies, TV shows. Restaurants.” Also, much, much more.
Security tokens, backed by a blockchain, are transparent and supported by a community of believers. Gone are the days where barriers kept control of finance behind closed doors, or the days where crypto was synonymous with “dark web.” It is a way to remove the middleman, deliver access to the free market, and cast off chains for a more creative financial existence.
For many, security tokens are the future, and they’re urging others to get on board now before it is too late. If this is crypto’s Apple moment, it would at least be worth your time to snoop around.