The new paradigm of trading is Crypto

Crypto has been back in the news, not only because of Bitcoin’s rise – but because of the large amount of institutional quality offerings now on the table.  Not only are new companies being started that offer institutional grade security and custodial services, but existing exchanges are taking their game to the next level.  Customers spoke and they listened.

 

Crypto exchange StormGain offers the ability to trade in demo mode, so traders can test their skills before depositing real funds – which you can now do with your credit or debit card.  Also they are offering trading signals for those who want to turn this into more of a passive investment.

 

In case you’ve never heard of StormGain, since its launch, StormGain is the Official Sleeve Partner of English Premier League club Newcastle United.  And for those who aren’t fans, Newcastle United isn’t just any Football Club, it’s a 126 year old tradition.  StormGain is positioning itself to be a part of the greater Crypto history as well, establishing its own traditions.

 

With all the craziness in the world today, it’s good to know that some of these Crypto firms stuck to their guns and continued to innovate and execute their business model (although, we would like to see more of them based in USA). 

 

Even though Circle actively trades on the Pre IPO market, it’s blocks of stock haven’t garnered much attention.  This is curious, especially since Circle recently bought SeedInvest, a regulated crowdfunding platforms.  Crypto is many things to many people – but it certainly does represent an alternative to the traditional financial system.  That applies whether you are a trader, investor, or want to send money to a friend overseas.  In many ways the Crypto exchanges are like the Forex brokers that existed 10 years ago.  In 2002 no one knew Forex existed and then all of a sudden in 2008 there were hundreds of Forex brokers popping up all over the world in Cyprus, Malta, and the UK. 

 

Although we have documented this in Splitting Bits – most quality analysis of the Crypto market was overlooked.  Investors instead mostly focused on crap ICOs and companies that mostly were selling vapor, like the now famous OneCoin.  But now that these frauds have been persecuted, investors have regained their focus and companies have regrouped.  Now we are seeing a 2nd generation of Crypto companies, and like we said they would, they resemble more like financial institutions, and many of them are regulated.

 

Part of the reason why we founded Crediblock is to build the next generation of FinTech systems and many of them are going to be built on Blockchain.  However, we don’t think that Blockchain deserves the amount of media coverage it has garnered.  Or in other words, it’s 99% hype and 1% tech.  Blockchain is useful but it’s not useful like Kevlar or Microcomputers, both which revolutionized the world.  In fact, one could say Blockchain is the first ‘disruptive’ technology to fundamentally shift the way people think and do business.  Disruptive technologies are usually not advanced, disruptors utilize existing technologies in innovative ways:

 

In business theory, a disruptive innovation is an innovation that creates a new market and value network and eventually disrupts an existing market and value network, displacing established market-leading firms, products, and alliances.[2] For example, the first automobiles in the late 19th century were not a disruptive innovation, because early automobiles were expensive luxury items that did not disrupt the market for horse-drawn vehicles. The market for transportation essentially remained intact until the debut of the lower-priced Ford Model T in 1908.[5] The mass-produced automobile was a disruptive innovation, because it changed the transportation market, whereas the first thirty years of automobiles did not.Disruptive innovations tend to be produced by outsiders and entrepreneurs in startups, rather than existing market-leading companies.

 

So blockchain companies are very often disruptive, just like the creators of Bitcoin, whoever they are.  That’s why we are naturally attracted to Blockchain and it’s participants, because they are disruptive.