Those who are associated with cryptos or exchange of any other firms are now eager to monetize themselves and at the same time resort to scaling their operations. The move comes in the wake of cryptocurrencies market becoming a multi-billion dollar sector from the multi-million dollar. It is a different issue that several digital coin exchanges and other forms of crypto enterprises are finding themselves at a crossroad due to the challenging atmosphere.
Finance Magnates suggest that though the overall virtual asset market is undergoing tremendous challenges and sluggishness in the wake of regulatory issues, it is a fact that the segment has transformed itself into world-class businesses. Before the Bull Run started, digital coin platforms came with pet projects promoted by a few people working from apartments. Now that the businesses have become an established one, a number of them are showing interest to monetize. How they want to do is the million dollar question among investors.
There are four ways available for them to raise funds. One among them is seeking acquisition, and they could plan an initial public offering (IPO). Similarly, they could also opt to tokenize themselves through initial coin offering (ICO) or any other means. The fourth attempt is to raise funds from private investors, which could enable the promoters to wait for more time to offload their stake. The interim period could see the market getting stabilized.
Recently, Smart Valor CEO (the Swiss-based company which seeks to enable the first stable coin backed by Swiss Franc), Olga Feldmeier, indicated that the most popular trend is the acquisition of cryptocurrency exchanges.
Bitstamp purchased for 350m. Poloniex – 400m. Coinbase 8b valuation.
1st gen of crypto exchanges celebrating – what to expect for second generation of platforms focused on security tokens.
— Olga Feldmeier (@OlgaFeldmeier) November 4, 2018
Incidentally, it is the first generation of digital coin exchanges that is seeing its success currently.
The second generation could focus on not only tokenized assets but also on security tokens. One of the cryptocurrency exchanges that is engaged in acquisition spree is Coinbase that acquired Cipher Browser, Earn.com, Distributed Systems, and Paradex Crypto. Similarly, Circle has acquired cryptocurrency exchange Poloniex. It is clear that the strong enterprises are taking advantage and is keen on extending its role on the emerging sector.