Expectations at the end of 2017 and in autumn 2018 could not be more different. At the end of 2017, crypto investors sent their bitcoins and ethers blindly to dubious ICO sites in anticipation of a shortage, so today they are eagerly awaiting the launch of regulated exchanges and financial products.
The numerous scams and stock market hacks as well as the lack of ICO success stories have driven the hated crypto investors into the arms of the traditional financial sector. Better the bitcoin on the bank than the new hyper-supa-dupa coin on your own hardware wallet. Instead of following the narrative of decentralization and the inherent promise of “cut out the middleman”, one is accelerating the re-centralization of the crypto market. It may bring tears to the crypto-idealist or anarchist – centralized, decentralized, shitless. Businesses and financial service providers have realized that only a few crypto investors are concerned about their own control and financial autonomy.
Regulation as a promise of salvation
So the big question these days is: How do I get approval from the authorities, whether BaFin or SEC, to get a crypto exchange, fund or ICO approved. The Blockchain companies can hardly be blamed. They have, with the exception of the decentralized exchanges, simply no choice. Authorities and investors ask for regulated offers.
The trend is towards nationally regulated crypto-financial products. Be it a stock exchange in Stuttgart, which would like to offer a crypto-trading app with the subsidiary Sowa Labs this autumn, or the other futures contract platforms for bitcoin futures on the other side of the Atlantic. The stamps “regulated” and “Made in Germany” are the best marketing. Accordingly, it would not be surprising if Stiftung Warentest discovers the crypto sector in the coming months.
More Sparkasse please!
While the LBS Bausparkasse rockerband in their commercials can drive up, crypto financial service providers for a Sparkassen-Biedermeier image. To stay with the example of the crypto app of the Stuttgart Stock Exchange, this is shown in just such simplicity:
Of the countless crypto currencies, only four can be traded. The private key remains with the stock exchange. There are no different order types. But the certainty to know his coins in a more than 150 years old institution in security – convenient and user-friendly.
The trust problem in the crypto market makes boring but trustworthy offers disproportionately attractive. Out of sheer innovation, the crypto-economy has forgotten customer needs. The crash is followed by uncertainty. Consequently, it is precisely this uncertainty that now promises the best deal.
It is the realism and pragmatism that finds its way into the crypto-mainstream. Contrary to some opinions, this is not to be seen as a step backwards, but as a correction of the unrealistic expectations that peaked at the end of 2017. The regulated and centrally organized crypto offers are much more of an intermediate step towards increasingly decentralized offerings in the long term. However, decentralized structures need more time to develop than centralized ones. In the meantime, more and more money will find its way into the crypto market through the hands of fund companies and established financial institutions. The further development and progress of the crypto-economy will not hinder this. Quite the opposite: the interest to further develop the crypto-economy in a natively-decentralized sense, will be distributed on just more shoulders and will delight even more curious. What are the support wheels on a children’s bike are the regulated financial institutions for the crypto sector – a help that is helpful in the beginning.
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Categories: Crypto Currency