The ICO game is dead. From their peak in 2017, ICOs have been on a decline. That’s because, most of them are scams and do not comply with regulations. In their place, Security Token Offerings (STOs) are taking over. Security tokens make lots of sense because they enable existing business to raise capital globally while at the same time remaining compliant to regulations. With the fast growth of STOs, platform blockchains that take the lead in this market will see a huge increase in value. That’s why Emurgo taking steps to position Cardano as the blockchain for STOs is a big deal.
In January, Emurgo made a strategic investment in Y2X, in a move to drive the adoption of Cardano. Y2X is a tech investment platform that aims to bridge the gap between the digital economy and the mainstream financial markets. Yesterday, Emurgo touched on this investment in Y2K and how it would push Cardano to become a leader in the STO space. In an article posted on the Emurgo page, they stated that,
“Y2X has a global mandate to help companies raise capital to do some of the most innovative things in the world. This is done primarily through issuing security tokens. Cardano will become the protocol of choice for Y2X and its portfolio firms, to enhance the usage of the technology, especially in the field of regulated STOs, therefore providing an increased value add to ADA holders.”
If Emurgo manages to push Cardano to the top in the STO market, it will be a huge win for Cardano. It could give Cardano gains similar to those of Ethereum (ETH) at the height of the ICO-mania. The only difference is that, STOs are more sustainable, which means Cardano’s rise could also be more sustainable.
In essence, Cardano at current prices makes for a great investments. Anyone getting in now is early, and will make extra-ordinary gains in the long run. That’s because, the project has achieved so much yet it is still a work in progress. The most crucial stage in terms of Cardano development is decentralization, commonly referred to as Shelley. This is a big deal because it will enable investors to stake Cardano. Not only will this make the network decentralized and secure, it will also give those staking it an opportunity to earn a passive income with Cardano.
A combination of STOs and a highly secure and decentralized Cardano could be the biggest gainers in the next crypto run up. Cardano went up to over a dollar when all of these developments were far off down the road. Now that it has achieved a good chunk of what is its roadmap and is growing in adoption, there is no doubt that that it could test much higher valuations in the long run. For instance, if STOs go big, Cardano (ADA) could easily test upper double digit valuations in the next few years. It’s quite possibly one of the best crypto investments in the market today.