Many people saw the invention of cryptocurrency and blockchain as a leap into the future, and gradually as the mainstream interest in the use of crypto assets and blockchains, both grew people started seeing them as a way to replicate and represent securities. However, despite the growing interest in the technology, to think it will swap out the traditional system in a jiffy is frankly not realistic.
In fact, some of the earliest innovators in this field blatantly admit that sky high expectations may not be in line with reality, solely because the technology is still very much new. And this topic has surfaced many times in different crypto and blockchain related events.
The ethereum conference, ETHDenver that took place this weekend is the perfect example. During a panel discussion at the conference, Tal Elyashiv, who is the co-founder and managing partner of blockchain venture capital firm SPiCE VC, said that the concept still remains very much “in its infancy.” SPiCE VC, is actually one of the first firms to release a crypto security under existing U.S. securities laws in order to provide a way to offer immediate liquidity for its venture fund.
Elyashiv, further commented that the infrastructure of tokenized securities, as of now has not yet developed fully and will take time to reach its full potential.
We’re going to start to see major pieces of the business infrastructure coming within the next few years … We’ll start to see institutional investors coming in this year
Elyashiv wasn’t alone in giving a reality check about the much-hyped technology of security tokens; in fact he was joined by a few other prominent names of the industry, including, the COO of security token advisory firm Satis Group, Shala Burroughs, director digital asset services of crowd equity platform Republic, Frederick Allen and CPO of security tokens trading platform OpenFinance, Thomas McInerney.
When you talk about a security token, it’s a token representing a security. It’s not just a name. It means not just what the token is but how the whole process is managed … throughout its lifetime.
Elyashiv further added.
Moreover, according to him there are certain regulatory issues that still persist and will continue to do so for roughly a year give or take; until government officials at the U.S. Securities Exchange Commission (SEC), come to distinguish between security tokens and crypto assets of other forms.
It was Burroughs who further advised people to take caution when it came to any tall claims or exaggerated statements regarding the maturity of the security token industry.
If you’re seeing articles that are reporting this vast ground swell of money into this industry, that’s not really in line with exact reality. It’ll take a few years for us to get there.
For further updates, stay tuned to BlockPublisher.