David Weild, former Vice Chairman of NASDAQ, explained to an audience that most established firms will migrate over during the ‘late majority’ phase, when risk is most minimized. He summarized that the space might take a decade or so to reach this level of maturation.
Back in June, the Security Token Academy hosted its first Security Token Summit with a panel of speakers discussing the ‘forthcoming security token revolution’ as they called it. Prominent leaders in the industry were present. David Weild’s comments in particular left an impact on the audience in how we can understand the future of cryptocurrencies and their adoption.
The Late-Majority Phase
Weild explained the late-majority phase as a mature period of the cryptocurrency space, where risk is minimized and these new blockchain-based networks are fully trusted. This would be a period of mass adoption across the board, leading to perhaps the tokenization of much of the world’s economy. However, such a mass migration of capital to the cryptocurrency sector demands that certain criteria be put in place or else it is impossible.
Weild himself has worked with a broad range of legislators, regulators, and other councils in government and was responsible for the creation of IPO filer called an Emerging Growth Company (EGC). He has studied markets as part of the Organization of Economic Cooperation and Development (OECD) and published comprehensive reports on the top twenty-six IPO markets in the world. In short, he has a background in the financial and regulatory world. His comments should be seriously considered.
It seems evident in the past few months that the problem with the blockchain space today is not visibility. Bitcoin is no longer an unknown; everyone in the fintech world is aware of the technology behind it. Rather than visibility, the problem is actually legal and technical. Today, the space is far too risky and there are too many legal ambiguities.
If what Weild is saying is correct, this “late-majority phase” will not come until we begin tokenizing the assets of traditional finance: in other words, tokenized securities. This would establish a level of trust and familiarity that the blockchain space right now lacks.
How soon do you think the blockchain space will realize this late-majority phase? Do you agree that tokenized securities will be fundamental to the maturation of the cryptocurrency market? Tell us what you think down below in the comments.
Image courtesy of Solidus Labs.