In late January, the Security Tokens Realised Summit was successfully held in London. 8 Decimal Capital’s senior investment associate Remy Fai presented his company’s thesis on why investors should be looking to security tokens. The company recently published their presentation on their blog.
8 Decimal Capital has now published their presentation given by their senior investment associate Remy Fai at the Security Token Realised event in London. In it, the space is broken down in its many complex parts. It’s an interesting read.
The Major Benefits
During the presentation, Fai outlined 8 major benefits of security tokens.
However, what was most interesting was Fai’s explanation of hype cycles.
Right now, the security token space is in a temporary lull. However, some may wonder: when will we know that the space has reached maturation? As 8 Decimal Capital writes:
“Overall, on the technology side, blockchain technology still has a lot of friction in terms of usability and we need a lot more user-friendly UI/UX.”
“We know the industry is mature enough for adoption when using blockchain-based technology will feel like using regular, mainstream softwares, so that we can focus more on the quality of investment projects rather than focusing on dealing with the short-term limitations of the technology.”
Analysts have also mentioned how the current decrease of hype due to natural interest cycles will likely result in a “big crunch” where many security token projects will fail. This, however, might not be such a bad thing in the long-run.
What do you think about hype cycles? When will the security token space reach maturation? Let us know your thoughts in the comments below.
Meet Tim. Tim is a co-founder of The Tokenist. Originally from Kalamazoo, Michigan, Tim is a mechanical engineer by training and has been investing his whole life. He started his career with GE in engineering and operations management where he held various leadership roles before leaving to pursue an MBA (he is a proud former co-chair of the Milton Friedman Group at Chicago Booth). After business school, Tim spent several years with Baird Capital where he made private equity investments in consumer and industrial companies. He left Baird to found Protective Technologies Capital in 2018, where he continues to make private equity investments in family businesses looking for help with succession planning. Tim lives in Chicago, where he enjoys watching Michigan football and basketball and traveling with his wife Kristen. Like Sia, he also likes telling jokes. However, his wife adamantly insists that he not share his “dad jokes” publicly so he reluctantly sticks to writing about finance and technology.