In 2015 and 2016 many new emerging information technology companies issued their own cryptocurrencies to finance their own projects.
These cryptocurrencies tokens essentially transferred a stake, but not on paper in the company's project.
Own crypto issuance is a way for tech startups and more mature technology corporations to circumvent Wall Street investment banks and their deeply rooted conflicts of interest and their tendency to take too much of the Initial Public Offerings and capital raising money surplus away from the technology companies actually building the service or hardware IT product.
Partly due to the influence and clout of Wall Street investment banks cryptocurrencies issuance slowed down as of late also due to the fact that Bitcoin and cryptocurrencies's prices fell more than 70 % from their recent peaks in the last 3 years.
However, I forecast that cryptocurrencies issuance will again become huge and gain ever more speedy traction among both tech startups and investors. Many of the largest venture capital funds like Andreessen Horowitz applied for brokerage licenses so they can invest in startups' newly issued cryptocurrencies like Russian Pavel Durov's Telegram messaging application for example.
No comments:
Post a Comment