It appears that the NASDAQ prepares cryptocurrencies trading on its exchange. The timing to launch this offer is somewhere in 2019, presumably the first half of 2019. Is this good news for crypto investors or will this imply additional regulatory restrictions which may be a bad thing? Here is InvestingHaven’s answer to this question. In sum, we strongly believe this is one of the many signs pointing to the schisma in cryptocurrencies. In other words, only a select number of cryptocurrencies will survive and thrive.
“The NASDAQ is attempting to be the first mover in crypto exchange governance, order execution, and at the forefront of institutional movement into the crypto ecosystem. While there have been other headlines connected to global exchanges dipping their toes into the crypto waters via partnerships and futures trading; the NASDAQ may just go all in.” (quote from the ICO Journal)
This means that the NASDAQ is preparing a pathway for cryptos to be listed and traded on the exchange. This not an official announcement from the NASDAQ, to be clear, but testimonials from some well positioned sources. Based on this it seems that the top 1 and 2 cryptocurrencies, Bitcoin and Ethereum, might kick off listing and trading on the NASDAQ.
This is a quote that was published on the ICO Journal: “The conversation around listing coins has centered on how they will be classified from a regulatory standpoint. As you can imagine, our leadership is closely connected to the rumbling at the SEC and CFTC around cryptos and what is expected over the next 3-6 months. Even with the longest of time frames assumed, some guidance will be provided and I expect we will act quickly. The framework (two different sets of framework based on two different regulatory outcomes) has already been laid to create a separate silo for coin listings and a robust trading apparatus. Doing the math here, look for regulatory bodies to provide guidance in Q1 of 2019, and an announcement and a ‘coin exchange’ to either be announced or launched in Q2 of 2019.”
What are the things that stand out in these 2 quotes:
- The word ‘institutional’. This may finally be an easy way to open up access to institutional investors, read the big money, to trade cryptocurrencies. So far, it was way too hard for institutional investors to get into crypto. Imagine a hedge fund trying to spend $20M in Ethereum. Good luck using an exchange like Kraken or a service like Coinbase to transfer the money, manage the account and operationalize the trades. Let’s even not consider the reporting requirements. Almost impossible. If the NASDAQ would offer Bitcoin, Ethereum or Ripple trading, it will be quite easy for institutions (read: large investors) to participate in cryptocurrency investing. This will likely help trigger the next cycle higher, according to us. Note: we said ‘help trigger’, we did not say ’cause’ or ‘start’ the next rally.
- The top 2 cryptocurrencies hinting at the schism in cryptocurrencies which we forecasted more than a year ago in 10 Investment Tips For Crypto Investing (May 2017). As said many times at least 90% of cryptocurrencies are worthless. They may be technologically advanced, and cool projects, but they do not create sufficient value in this world to be economically viable. In the end cryptocurrencies are startups which respect economic laws, period. The NASDAQ exchange offering a select number of cryptocurrencies will stimulate the trend of differentiating added value cryptocurrencies from the ones that do not add sufficient value.
InvestingHaven was aware about the above mentioned trends already a long time ago. That’s why, last year, we did set up 5 criteria to assess cryptocurrencies, one of which being business model maturity and the other one being economic viability. What came out of this is a selection of just 10 cryptocurrencies, out of the 2000, which we strongly believe will be cryptocurrencies that will be part of the select group that survives and thrives after the vast majority of cryptocurrencies has died.
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