Some people predicted that crypto assets were going to be a fad that would quickly come and go. But in just a short time, we’ve seen crypto assets become the focus of new innovation. Cryptocurrencies have offered value exchange, the ability to generate income, and a viable investment option. Young companies are turning away from traditional VC to offer token options to investors. And blockchain technology is offering new value in the form of frictionless data exchange. As a result, crypto is making an ever-expanding effect on global economies, technology and culture.
Because of this, crypto assets are becoming a fully institutionalized asset class, which can only be a good thing. Scaled buy-in from investors, brokers, financial services companies and more can only improve the recognition of crypto assets and markets as a whole. Greater participation creates greater efficiency and stability of crypto assets as well.
- It’s good for regulators. The crypto ecosystem has traditionally run independently of governments and institutions, but a lack of regulation is causing a lack of standards, which is hurting its future growth. Regulators already work with disclosures, which lets them know how crypto projects are handled, so it’s an easy way to use the same framework for assessing project valuation.
- It’s good for valuation. Disclosures will also help better determine the valuation of crypto assets so that investors can make informed decisions on where to put their money. A system for determining asset valuation will also lead to increased sustainability across crypto asset classes, which can only help with more widespread adoption. Increased ease in regulation, more exposure to new projects, better investor relationships and more standardized valuation are the steps needed to fully institutionalize crypto — and that all happens with the creation and adoption of a corporate global registry.
- It’s good for new projects. Having a global registry where companies disclose what they’re working on lets the industry know about good projects in the pipeline and gives early-stage investors transparency into projects they might want to back. Similarly, it can raise red flags on scam projects.
- It’s good for IR. Providing an accurate account of what’s going on at a company, including milestones, leadership changes and issuances, will only help to build relationships with investors. And with crypto being such a new industry, disclosures can assure investors that they’re not being left in the dark and left on the hook.
James Junwoo Kim has a balanced experience in diverse scenes such as trading, corporate strategy and investment/business development. Most recently, as the managing director of NXVP, the venture capital arm of the largest online gaming company in Korea, he was engaged in crypto deals all over the world, acquiring exchanges and reviewing numerous ICOs. His experience in dealing with the lack of proper information to make financial decisions propelled him to co-found CrossAngle.
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