“Tokenizing Securities Do Not Accomplish Liquidity, Demand Or Add Value”, Reckons Chris King
The ever inquisitive crypto analyst and investor at the Morgan Creek Digital, Chris King hits the concept of tokenizing the traditional securities. There has been a newer trend according to which the crypto and other ventures too, are digitizing their equities, the entire phenomenon being titled as “tokenizing the securities or equities”. Although this might seem that it is a way to elaborate the use of the cryptos and can bring prestige into the crypto market, it is downright the opposite as per Chris King. Previously, King sticked with the process as a good omen for the cryptos but studying the procedures and the outcomes entirely, he parted ways losing faith in the phenomenon to begin with. BlockPublisher got to discuss the security tokenization with King and was able to gather some comments from the non-believer of the tokenization process.
Prior to further knowledge about tokenization rose up in the market, I did support tokenizing securities. This thing does not either add any value nor bring liquidity and demand for it. Being as absurd as it is, it is only a show without creating any value in the process.
As asset declaration turned out over a large scale, it got cryptos attention and there we had several companies and firms sharing their assets via the cryptos by tokenizing these shares. There are several takes for the process out of which one is the use of simile, more like a premonition. A well known crypto personality, JP Baric had the following to say about this.
Security Tokens will be used to tokenize individual recurring revenue streams of businesses. Similar to what the gig economy did for labor.
Furthermore, Chris King presented the situation in an entirely different way as to which people were uncertain if this is the same person stating the comments about the thing that he previously applauded to the extremes. As per King, as things cleared out, a sense of doubt was given way to his mind and now he has grabbed the concepts enough to be a critique to it.
Such a small market opportunity and that problem can be fixed with a non-blockchain solution. Research is primarily from being active with market particpants (investors, issuers, tokenization platforms, exchanges, etc.)
