According to the early-stage Blockchain entrepreneurs, although more and more corporations and individuals are turning to Blockchain technologies and crypto assets for an alternative take on security matters, the hype may have been too idealistic and will inevitably be brought back to harsh reality.
Tal Elyashiv – co-founder and managing partner of the first fully compliant (regulation wise) liquid venture capital fund SPiCE VC – claimed that the “crypto going mainstream” is still quite far-fetched.
Specifically, Tal believed that the networks that those tokenized securities are built upon are still a work in progress and it will take years for all the pieces of the business infrastructures to fall into place. Other security tokens experts such as Frederick Allen – director of crowdfunding investment platform Republic, Shala Burroughs – COO of Satis Group and Thomas McInerney – CPO of OpenFinance have all backed Tal’s cautious opinion regarding the matter.
“When you talk about a security token, it’s a token representing a security. It’s not just a name. It means not just what the token is but how the whole process is managed … throughout its lifetime,”
Elyashiv has also further said that it would take roughly one year for the U.S. Securities Exchange Commission (SEC) to give clarification the distinction between security tokens and cryptocurrency that can finally demystify the regulation-related scaling issues of the tokens.
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