Blockchain Capital Markets — Part I: A New Paradigm for Capital Formation
ICOs and tokens bring open source protocols and financial incentivization together. This combination is unleashing unprecedented levels of creative destruction and innovation.
Key research questions
- What is meant by Blockchain Capital Markets?
- What does recent price action within the digital assets sector indicate?
- What are the key trends to monitor in 2018 and beyond as the Blockchain Capital Markets mature?
Abstract
Tokenization and the Decentralized Internet will usher in a new era of digital commerce and represent an evolution from the current model of Web 2.0.
This is the first in a series of reports which address the themes of decentralization, tokenization, and initial coin offerings (ICOs).
Much has been written about these topics, but there is very little true understanding of the impact that these innovative funding structures could have upon the process of capital allocation.
Here we provide the reader with a detailed framework for how tokenization of value will fit into the decentralized digital economy of the future.
As institutional investors are on the verge of entering the digital assets sector, the large and liquid cryptocurrencies such as Bitcoin and Ethereum appear well-positioned to benefit from this wall of capital.
However, the wealth opportunity may be found in other areas of the digital assets complex, namely ICOs, which could redesign the Internet in a decentralized manner — Web 3.0.