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Cryptocurrency bubbles will disappear as security tokens go mainstream, says Vinny Lingham

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Cryptocurrency bubbles will disappear as security tokens go mainstream, says Vinny Lingham
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The oft-touted claim by traditionalists to ridicule cryptocurrency proponents is that Bitcoin [BTC] and all virtual currencies are merely a bubble. The December 2017 surge, its subsequent fall, and the long crypto-winter are often used to substantiate these claims. True or not, one cryptocurrency proponent is in the news after stating that these “bubbles” will decline in the future, as development ramps up.

Vinny Lingham, Co-founder and CEO of Civic, mulled the future of the cryptocurrency industry against the looming prospect of security token introduction, through a series of tweets on April 14.

He began by affirming entrepreneurial freedom in the cryptospace, relative to its traditional financial counterpart, citing the latter’s low “success rates.” The rewards of this crypto-success will be “far greater” than the post-dotcom bubble success of the FAANG companies, he added. FAANG refers to Facebook, Apple, Amazon, Netflix, and Google, the top 5 best-performing technology stocks.

Lingham highlighted the individual nature of the dotcom bubble, while referencing the multiplicity of cryptocurrency bubbles that have caused various ripples in the coin market. As security tokens enter the mainstream, crypto-bubbles will disappear, he said.

His tweet read,

“Crypto has had many bubbles already, but as the industry moves towards things like security tokens that have yield curves, bubbles are unlikely to form in those sub-asset classes.”

Tokens, primarily a product of initial coin offerings [ICOs] or other forms of tokenization, draws parallels with cryptocurrencies, but represent an external asset which can be traded on a particular platform. Investors are given these tokens after an ICO, allowing them to vote, stake, or access certain facilities within a network.

Cryptocurrencies have been tirelessly vying to remove the security tag, as it increases regulatory oversight and decreases adoption. However, with the re-introduction of the Token Taxonomy Act, virtual currencies may not be classified under the definition of a “security” within the United States.

However, Lingham still pegs security tokens to “hit the mainstream as alternative ways to finance network effect opportunities.” He added that this will not only benefit the industry and prevent the bubble from forming, but also enhance utility token models as well.



The Civic CEO also added that the April 1 Bitcoin price rally, which saw the coin climb over $5,000, was not a sign of the end of the bearish cycle. According to him, BTC will need to push above the $5,700 to $6,200 range for 1-2 days, for the “crypto-winter” to subside.

A price double the touted bottom needs to be reached to confirm the departure of bearish sentiments and to shift the momentum upwards, he concluded.





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Binance Chain’s first project Mithril to launch with MITH/USDT trading pair

Namrata Shukla

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Binance Chain's adds Mithril as its first project followed by MITH/USDT trading pair
Source: Pixabay

Binance launched its blockchain protocol on April 18 and it already has its first project launch on its network. Mithril, a decentralized social media platform will migrate to Binance Chain. The company’s MITH token, that ranks 121st on CoinMarketCap will transfer from ERC20 to Binance’s BEP2 standard.

Binance Chain has been a highly anticipated project in the crypto world since its announcement and with its launch, the community provided ample support to the move. According to reports, Binance is luring companies into migrating to their new native chain and leave Ethereum.

According to Mithril’s blog post, the migration commenced after the mainnet launch of the Binance Chain and informed the MITH holders that the deposit and withdrawals on Binance.com will be halted for the initial 12-hour migration period, however, trading will continue. The post added:



“Once the initial migration of ERC20-based MITH to BEP2 MITH is complete, Binance users will be able to withdraw MITH to BEP2 wallets, such as the Ledger Nano S, and begin trading on Binance DEX. ERC20 versions of MITH held in private ETH wallets or on other exchanges will not be impacted.”

As Mithril announced about its migration to Binance chain, the price of MITH, Mithril’s native coin saw a surge. The coin also saw a 70% hike,  followed by a market correction. At press time, MITH was valued at $0.0782 with a market cap of $40 million. The 24-hour trading volume of the coin was $108 million as it pumped by 67.10% over the past day. In the past seven days, the coin noted a surge of a massive 81.47%, which started to dip by 0.84% over the past hour.

Following the addition of the project, Binance announced the listing of MITH/USDT trading pair, which will start trading on April 19, 10 AM UTC.





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