Anyone see the markets spike this morning? Could be that the NYSE had something to do with it…..
Some coins were up over 200% and many people were speculating on the reasoning, but the real deal is that Crypto is, and has always been regulated in some ways, in the form of a buyer and seller relationship, people always use discretion on their purchases. Any time a transaction occurs, you have a buyer and a seller, and some sort of scrutiny goes into the deal, so to think that these coins come out of thin air is really naive.
However, there is always the risk of hacks and other transactions that occur without discretion, or permission, and that is really one of the primary arguments for regulation. People want to know their funds are safe, and to do this, exchanges should ensure that their technology is secure, and that their funds are insured, and that is why it is important to have large intercontintental, worldwide exchanges that can serve as gateways for crypto adoption on mass scales.
Here is a recent announcement about some such initiatives:
Today, Intercontinental Exchange (ICE) announced that it plans to form a new company, called Bakkt, which will leverage Microsoft cloud solutions to create an open and regulated global ecosystem for digital assets. The new company is working with organizations such as Starbucks, Microsoft, and BCG to create an integrated platform for consumers and institutions to buy, sell, store, and spend digital assets on a seamless global network.
Please see below comments from Rohit Kulkarni, Manager Director of Private Investment Research at SharesPost, on the topic.
“We view such forays into crypto by large and established global institutions as critical tipping points in adoption of digital currencies globally. Crypto-exchanges such as Binance and Coinbase are already among the largest exchanges of any kind in the world. And they are likely to get bigger by acquiring smaller exchanges. In the next 12 months, we’re going to see some financial institutions get involved in terms of owning these assets. Then we’ll see entities begin to trade crypto not just on the future side but on the actual side. Near term, we believe investors and large corporations are still looking for real world uses beyond cryptocurrencies. Widespread adoption of blockchain will likely come from consumers instead of businesses. But we think the future is bright, especially as large institutions like ICE use the technology, which helps attract more investment and innovation.”