Advice for Investors in the Blockchain Sector
Understand that the space has distinctions; meaning bitcoin itself is a classified asset. Stephen doesn’t believe in straight tokens or straight token offerings and he suggests looking at things that are a blend.
If you’re investing in just tokens, Stephen notes that this only covers the speculative side of things. The advantages to this are you might get liquidity quicker than you would a straight equity. However, the downside with straight tokens is you lose some of the financial controls. It all depends on the horizon for your investment. If you’re looking short term, speculative, such as penny stock, you’re looking through a different lens than something more valuable in the long term.
Industry Evolution
Blockchain is a technology component. It’s no different than databases or the internet.
The industry as a whole is going to continue to grow- just like databases and the internet.
Simply put, blockchain is an enabler.
People will start investing in a software or a service company that uses blockchain to perform a function which is different from the token rounds that are crypto. It’s a fascinating new way to fund a company. The big distinction here is maturation of the blockchain industry as a whole for the technology side of things and the funding side which enables new types of funding.