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Zilliqa Powering New Exchange That Tokenizes Tech Shares

  • Alex Morris
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    Average investors will be able to buy shares of Uber, Airbnb and other tech behemoths in the form of tokens


Zilliqa Powering New Exchange That Tokenizes Tech Shares
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Zilliqa, in partnership with MaiCoin, has launched a new fully regulated token exchange in Singapore. Hg Exchange will reportedly allow tokenizing the shares of major tech giants, such as Uber and SpaceX.

Bridging the two markets

Hg Exchange is set to become the first ‘old-meets-new’ trading platform in southeast Asia that bridges the traditional stock market with the nascent cryptocurrency market. According to their statement, the users will be able to get access to fledgling startups as well as major tech behemoths whose capitalization exceeds $10 bln.

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Zilliqa will facilitate the tokenization of stocks on its own network. Despite lowering investment amounts, only accredited investors will be able to become the members of this exchange. Meanwhile, MaiCoin will enhance security with the help of transaction signing technologies.

The tokenization trend

As U.Today reported earlier, Estonia-based DX.Exchange, which launched on Jan. 7, already offers tokenized private shares of FANG stocks and Tesla. The exchange, which acquired Estonia's FIU license, sells shares in the form of Ethereum-based tokens to non-US investors.   

Tokenization has become a pervasive trend that goes beyond the cryptocurrency industry. For instance, pundits proposed partitioning art pieces into tokens to bring more liquidity to the market during last year’s Miami Art Week.
 


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It Could Take Bitcoin 22 Years to Retest Its ATH: UBS Analyst


It Could Take Bitcoin 22 Years to Retest Its ATH: UBS Analyst
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The fact that Bitcoin saw its price breaking above $5,000 at the beginning of April made everyone highly optimistic about the prospects of a full-fledged bull run. However, crypto bulls shouldn’t hold their breath since it could take decades for the number one currency to recover from its epic downfall.

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Bitcoin compared to other bubbles  

After comparing Bitcoin to other bubbles, UBS analyst Kevin Dennean came to a conclusion that BTC will most likely follow their lead, Business Insider reports.
However, here’s a catch – Bitcoin will have to undergo a long-lasting recovery, so it is not reasonable to expect another bull run in the nearest future. For comparison, it took the Dow Jones Industrials 22 years to reach its previous peak.   


‘We're struck by how long it took other asset bubbles to recover their peak levels (as long as 22 years for the Dow Jones Industrials) and how pedestrian the annualized returns from trough to the recovery often are,’ Dennean claims.

Bitcoin compared to other bubbles  

Picture: ©FactSet

With that being said, it is still not guaranteed that a certain bubble retests its ATH even after decades since a big burst. Nikkei, despite reaching its 20-year highs in October 2017, was still 50 percent lower than its ATH that was recorded in 1989.

Nikkei

Picture: ©ATLAS

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When you lose, you win

During the peak of the crypto market, Bitcoin was frequently compared to the infamous tulip mania, but these two barely had anything in common (except for the horrible stability of value). Hence, it hardly makes sense to apply a certain pattern and expect Bitcoin to behave in a similar fashion to other bubbles.

Historically, enormous price crashes actually benefited Bitcoin. As reported by U.Today, Bitcoin trader recently noticed that the BTC price rise 5.1-16.89 times every 70+ percent plunge. Crypto bulls have every reason to expect a similar outcome this time around.

'Shadow of bull statue on texture tiles floor metaphor of bull market is coming for stock market or investment asset' image by 123rf.

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