Will tokenization of real assets become a hot trend?

Summary:

• Investors having their accounts in DX.Exchange, a digital exchange, will be provided with a possibility to trade US stocks when the market is closed

• Up to 80% of South Korean miners were shut down last year

• Dash tries to bounce back but a crucial obstacle remains in place

Tokenization of US stocks

Yesterday we wrote that cryptocurrencies were gaining acceptance among retailers. However, this trend is not present only there as blockchain technology is more eagerly used in other branches of the global economy as well. Finance and investment is not an exception, hence no one should be particularly surprised hearing the vision concerning tokenization of real assets like stocks, bonds or even fine arts and real estate. Therefore, the new DX’s offer could gain acceptance among blockchain enthusiasts.

The exchange, having its offices in Estonia and Israel and being licensed by the Estonian Financial Intelligence Unit, will start offering digital tokens based on 10 stocks listed on the NASDAQ as soon as next week. Among the stocks being in the offer we may find brands like Apple, Facebook, and Tesla. The DX plans to expand its activity to the NYSE as well as Tokyo and Hong Kong. How will it work? Each digital security will be backed by one share which will be bought and held by MPS MarketPlace Securities. It needs to be said that MPS MarketPlace Securities is regulated by CySec, the Cyprus Securities and Exchange Commission. Moreover, investors who decide to purchase digital securities will be entitled to the same cash dividends and they could purchase even a fraction of a share (a dividend payment will be lower accordingly). The tokens will be based on the Ethereum network. A big advantage of digital securities is that they could be purchases even the stock market is closed. According to DX CEO Daniel Skowronski the offer is compliant with Europe’s Mifid II directive. In his emailed statement he wrote that “We believe that this is the beginning of the traditional market’s merge with blockchain technology. This is going to open a whole new world of trading securities old and new alike.” According to Bloomberg the US SEC declined to comment.

Looking through cryptocurrencies’ charts it is worth taking a look at Dash. Admittedly, the price failed to move back above $103 after bottoming out nearby $55, but bulls seem to be still poised to attempt to break through the mentioned resistance. If the price moves above the red rectangle, then buyers may look at $131 and $173 as their subsequent targets. Source: xStation5

Crypto bear market took a toll in South Korea last year

According to the data obtained by Chinese state television the cryptocurrency bear market we had last year caused that between 70 and 80% of miners based in South Korean decided to wind down. The report says that the challenges faced by South Korean miners were compounded by a dramatic slump in the premium on cryptocurrency prices in Korea as it collapsed from 40% at the start of 2018 to 1% today. This is an example how much cryptocurrency miners’ activity is tied to the price of virtual coins. This dependence seems to be much lesser or even non-existent in case of blockchain-based systems and services. This is why blockchain could survive while cryptocurrencies themselves not necessarily.