Earlier this year, Kevin O’Leary appeared on CNBC and made the statement that Asset-Based Crypto-currency Coins would eventually replace small cap stocks. O’Leary is a famous TV personality and investor on the popular TV show Shark Tank. Below is the video as well as our analysis of 5 reasons presented.
- Liquidity
- Transparency
- Ownership
- Cost of Issuance
- Bonus: Access to Opportunity
Liquidity
As Kevin points out, the nature of the underlying technology means it is easy to issue and transfer coins to anyone who wants to buy them and in any amount.
Transparency
Related to that is the transparency of everyone being able to inspect the blockchain and know exactly where they are at. The level of comfort provided to all participants supports its liquidity.
Ownership
Having a coin that is tied to an asset means that coin holders own something of hard value of type they are used to.
Cost of Issuance
The cost to issue these asset-based coins is the cost of writing and deploying the smart contracts and wallets. This cost is significant less than the cost of traditional equity issuance methods. This is good for both investors and issuers since it means more money for the issuer instead of money going to a third-party such as an intermediary.
Access to Opportunity
While Kevin O’Leary’s perspective is primarily as being involved as in investor in the issuer, he also mentions the ability for people to invest as little as $50. While that’s great from a liquidity perspective for the issuer, it’s also great for the investor who puts up $50 to own part of a $400M property, giving them access to investment opportunities they didn’t have access to before.
Asset-based coins are still in their infancy but Kevin O’Leary and others see them as the future of the crypto market. Look for our upcoming report on the hottest asset-based coin projects, or sign-up for our newsletter to get early access to our reports.
