For years, people have invested their money in this market based on their trust in companies and their profitable market, but this process is actually coming to face a dramatic end, Where companies will lose their interest in the public offering of their equity, under the supervision of governments and fragile economy, on the other hand, investors are looking to find new trustful, more profitable and anonymous ways to invest their money.
ICO projects with % 70 growth in the Number had reached from 876 to 1247 Projects (2017 to 2018) in one year. According to "blockchain.info" data, the Number of global Bitcoin wallet address had reached nearly 30 million! And it's expanding every day.
According to TechCrunch report "IPO registration has declined 65%. 363 companies registered in 2014. In 2016, the number dropped to 128" .
Meanwhile, ICO projects with % 70 growth in the Number had reached from 876 to 1247 Projects (2017 to 2018) in one year. According to "blockchain.info" data, the Number of global Bitcoin wallet address had reached nearly 30 million! And it's expanding every day.
So, as you can see, this is not a prediction! The transition is happening, and just like any other market, early-adaptors are the true winners! So, sooner you take action, more profit you'll probably get.
According to Businessinsider report ( https://www.businessinsider.de...017-12?r=UK&IR=T ) "Global market cap has exceeded $80 trillion.
A bull run of this length — nearly nine years — was last seen before the Great Depression. Goldman Sachs believes the "bull market in everything" is about to come to an end. In the medium term, we face either "slow pain" or "fast pain" in the equities markets, Goldman says."
Could IPO survive the hurricane? It seems that technology is slowly taking the control of the market, with the new development of STO, which is very similar to IPO in the structure but more functional (both based on assets of the company) we can expect that the STO market will beat the IPO in Numbers!
According to CNBC report ( https://www.cnbc.com/2018/07/1...-and-its-going-.html ) Ron Paul "former Republican congressman" said "this market is in the biggest bubble in the history of mankind and when it bursts, it could cut the stock market in half! He also said I see trouble ahead, and it originates with too much debt, too much spending"
He was talking about a big deficit on the federal government, and actually, he is not the only one who warned the government about the upcoming disaster!
Let's discuss the history of both markets in detail; can we trust the Stock market? Is it really immune to invest?
History of IPO market capitalization shows us that this was not a provable market; it had faced some extraordinary changes in prices throughout its journey! You might have heard of The worst day in wall street history called "The Black Monday", according to CNN report "by the closing bell, the Dow stood at 1,738.74, down 508 points, a crash like that today would equal more than 5,000 points on the Dow" , this significant event caused %22 Dow drop in a single day!
We have so many incidents like that throughout the history; Japanese asset price bubble 1991, Asian financial crisis 1997 including Thailand, Indonesia, South Korea, Philippines, and 1907,1929,2008-2009 only in America!
Let's discuss the structure of the Stock market;
The IPO market is backed by the assets of the companies including properties, industrial machinery, Product evaluation etc.
Companies actually lending these assets by offering their equity for the public, people pay for the equity and give the power of "over-spend" to companies! Means that you own a part of the company, without having the actual possession of it!
So how is that different from the banks? As you know, people invest their money on banks, which gave banks the ability to spend more than they have!
Here, we have the same structure for Stock market, both of these works with people’s credit and trust, but the good thing about the Stock market is that you can be sure there are some tangible assets backing your equity!
But as we mentioned before, this is not a safe market, history shows that it has a lot of crashes, and it will have bigger ones in the future! As long as the governments have the authority of making decisions and affect easily on this market, we can predict that we will face some greater crashes in the future!
These days, as you might have heard in The news, The US government shutdown breaks a record "longest shutdown in the history"! 800,000 federal workers are still without salary, if it gets longer, this phenomenon will lead the US to a crisis in the economy and the stock market, we can see the early signs of that in the stock market evaluation!
According to an estimate by S&P Global Ratings ( https://www.cnbc.com/2019/01/1...ailers-the-most.html )"it will only take another two weeks to cost the economy more than $6 billion, exceeding the $5.7 billion that President Donald Trump demanded to fund his proposed border wall.
The U.S. economy will have lost $3.6 billion by Friday" Published on Jan 11, 2019.
So, is it logical for us to trust a market which could burst by the hands of a person?!
We mentioned that "IPO & STO" are similar in the structure, but does that mean the STO market is also unreliable?
We should discuss the structure of STO market first;
Just like the initial public offering, security public offering is also based on the assets of the company, you pay to get the equity and you get paid when the company generates income, the difference is you can exchange whenever you want! It's a 24/7 market!
There is no shutdown, there is no working time, and at the top, there is no centralized authority of the market! It's covered by the regulation which could help STO market to grow faster every day, the trading amount on STO's are limited, due to security which helps people to recognize scam projects faster than any other market.
As STO's are representing the equity of the companies, we can consider it as "The Next Generation of IPO" but more secure, effective and profitable.
Every decision we made in our lives, depends on our observation of evidence and data, and how we analyze this information, as you can see, We've reviewed The very first signs of the transition from "IPO" to "STO" with data and evidence, and now, it’s time to take action, we need to decide on whether we want to become an early-adapter of this transition, or be the laggards.
As you know, early-adapters are always The True winners.
Comments (0)