With the price of Bitcoin on a tearing run, it’s hard to say we’re all in this for the tech. However, luckily for the advancement of the space, beyond the speculators, there are plenty of blockchain companies building, innovating, and pushing the envelope. With that in mind, here are the top three trends in the crypto space right now.
1. IEOs (Initial Exchange Offerings)
ICOs are dead. Every man, woman, and their respective dogs know that the SEC pretty much killed that phenomenon. The downward pattern from 2018 that continued into this year shows an almost uncontested freefall.
Perhaps it was a good thing, considering that more than $1.2 billion of crypto funds were stolen through scam projects and inside deals in the first quarter of 2019 alone.
But while many people in the space predicted the rise of STOs (Security Token Offerings), that particular phenomenon is still waiting at the gates. Many company’s hands are tied or they’re halted by the regulators.
ICOs are dead
Long Live the STO!
— Josh Olszewicz (@CarpeNoctom) November 17, 2018
Enter the IEO (Initial Exchange Offering). What is it?
An IEO is where an exchange sells the tokens through its platform rather than the company directly to the people. And as always, Binance is leading the charge.
Is it just an ICO dressed up in sheep’s clothing? Pretty much, although the great thing about IEOs is that the exchange is putting its reputation on the line with each and every one.
That means that investors have the assurance that proper and professional due diligence is put in. The team, the code, the project are legitimate, and investors won’t be duped out of their ETH.
2. Decentralized Autonomous Organizations (DAOs)
When Digitex Futures broke the news about becoming a DAO last month, its community had mixed reactions. It also sparked a lot of questions from the obvious, what is a DAO? to why the company would want to become one.
DAOs are companies that can run autonomously thanks to digitally enforced rules encoded into smart contracts. It’s still a new concept when it comes to businesses and has some unfortunate precedents. Just cast your mind back to The DAO hack of 2016 that split Ethereum in two.
However, three years is a lifetime in a nascent technology cycle. Smart contract technology has moved on from then. Even heavyweights like JPMorgan are experimenting with it to automate a myriad of mundane back-office tasks to improve efficiencies.
It’s easy to see how smart contracts could be used for financial transactions such as paying salaries or providers. But how do they work when it comes to the decisionmaking of the company?
In a DAO, participants vote on proposals related to the organization. This could include whether to hire a new legal team or how and when to pay out bonuses.
In the case of Digitex Futures, the company isn’t becoming a DAO overnight. CEO Adam Todd is going to tokenize ownership of the exchange and distribute DGDAO (DigiDAO) tokens over the next five years to its current DGTX token holders.
The community will then hold equity ownership and voting rights and effectively own and manage the company as a collective without any hierarchy. Will it work? Time will tell. But this is almost certainly the future of business governance.
3. Token Burning
Token burning might seem like a very strange concept at first. After all, why would a cryptocurrency company mint tokens just to go ahead and destroy them? Well, it actually makes perfect sense when you think about it. Even traditional public companies operate in a similar way.
Just consider Apple’s $100 billion share buyback plan (and subsequent burning) last year that raised its dividend per share by 16%. Token burning does the same in that it creates more value for the tokens in circulation by reducing the number of them available to buy and sell.
Many cryptocurrency exchanges carry out regular token burning including Binance, KuCoin, and Bitfinex. And it seems to be a pattern that could become the new norm.
Hot Trends in the Crypto Space
There are constant developments and trends in the crypto space with more and more institutions entering the game and giant corporations like Facebook taking cryptocurrency to the masses.
It will be interesting to see how these new autonomous organizations pan out and whether IEOs will circumvent draconian legal systems or if it’s all still too new and unfamiliar to be a compliant way of raising funds.
Blockchain Platform MedsLOCK Set to Have Impact on Tracking COVID-19
Governments and private firms are scrambling to test the public and identify, localize, and trace COVID-19 cases in their countries. Blockchain can help.
Real-time tracking of cases has widely been cited as the pivotal factor necessary to re-open economies as it would allow active cases to be isolated from the rest of the population. However, governments around the world continue to grapple with precisely how to approach the problem with a standardized model.
In the US, Johns Hopkins University (JHU) and the CDC provide tracking metrics, but they lack granular details. They also don’t account for the supply chain modeling of medical supplies, potential blood donors, or the efforts of non-profits clambering to help. A more efficient and transparent allocation of information is necessary amid all of the current uncertainty.
In particular, all of that information would be better served if it was funneled into a single interface. That’s precisely where blockchain platforms are striving to make an impact, and it’s quickly grabbing the attention of some governments.
A Unified Monitoring & Communication Application
Combining multiple sets of data into a single interface would enable governments to better trace the trajectory of the pandemic and make swift decisions about resuming economic activity.
However, there remain some notable…
Cryptocurrency Fraud is Evolving; Bitcoin ATMs Mitigate Risk
In one of the more overlooked aspects of the crypto ecosystem, it appears that the bulk of illicit activities are shifting from hacks and thefts to cryptocurrency fraud and scams.
CipherTrace, the crypto-surveillance, and analysis firm released a report at the end of Q4 2019 that revealed hacks and thefts had decreased by 66 percent in 2019 while fraud and misappropriation of funds surged by 533 percent. And beneath the COVID-19 hysteria of 2020, hacks in the crypto sector have been eerily isolated.
Outside of a few exploited flaws in P2P exchanges and DeFi flash loan vulnerabilities, the headline-grabbing hacks of exchanges for hundreds of millions of dollars have been absent so far this year. Is the industry due for another massive hack, or are stringent KYC/AML processes, regulatory crackdowns, better security practices, and blockchain surveillance working?
KYC/AML Improvements Are Reducing the Appeal of Crypto Exchange Laundering
2020 is far removed from the no-KYC wild west days of the early-mid 2010s where anonymous altcoin casinos preponderated and the Dark Underbelly of Cryptocurrency Markets thrived.
Today, bitcoin and the crypto ecosystem is becoming institutionalized with a surfeit of derivatives (e.g., options, futures, perp swaps, etc.) available on…
Top 7 AI and Software Development Companies For Startups and SMEs
Top software development companies are tasked with proffering digital solutions to practical problems by producing innovative software programs, apps, and websites. The industry has grown into a huge force and with a revenue of over $481 billion. While some companies focus on certain software solutions such as web development, mobile app development, artificial intelligence, etc., others are all-purpose.
This is a digital age, as you already know. Therefore, the success of your company would depend a lot on digitizing your services and providing your customers with high-quality software and websites.
Today, it is much easier in that you can simply outsource your software needs to a custom software development company. You have a lot of options to choose from, but the best firms are reputable and experienced, have a highly skilled workforce, and uses the best processes and tools to ensure maximum satisfaction.
This list contains some of the best software development companies you can find around, especially those focused on artificial development needs for startups and SMEs.
TopDevz is a multi-award winning software development company that has rightly earned its place as one of the fastest-growing companies in the US. Its unique model is flexible, cost-saving, on-demand and easily scalable and the company has a 96% retention rate. With…