Growing the Crypto Community
Brian Armstrong, the CEO of Coinbase, has made a fascinating prediction: the number of individuals involved in the cryptocurrency ecosystem could soar from a modest 40 million to a staggering 1 billion within the next five years. This assertion, reported by TechCrunch on September 7, raises eyebrows and stirs excitement among crypto enthusiasts, skeptics, and everyone in between.
The Rise of Tokens
Armstrong attributes this bullish prediction to commercial organizations that are diving into the world of tokens. He believes that virtually any company with a cap table should consider developing their own token. Why? Well, he suggests that these tokens could serve as an alternative investment, operating alongside traditional equity. Armstrong elaborated, saying, “Every open source project, every charity, potentially every fund or these new types of decentralized organizations [and] apps, they’re all going to have their own tokens.” Talk about a token explosion!
Regulatory Hurdles on the Horizon
However, with great potential comes great responsibility—or in this case, great regulations. Armstrong acknowledged that the question of how tokens will be treated under regulation is yet to be answered. He termed it as “a big open question,” indicating that the classification of many tokens as securities remains uncertain. Armstrong noted that Coinbase anticipates a substantial subset of these tokens being recognized as securities. Better get your legal teams on the phone, folks!
Coinbase’s Expanding Horizon
Coinbase isn’t sitting around waiting for regulations to sort out themselves. According to Armstrong, the platform could host hundreds of tokens within “years,” and even millions in the longer term. To prepare for this token tsunami, Coinbase has taken meaningful steps, including acquiring securities dealers like Keystone Capital Corp., Venovate Marketplace, and Digital Wealth LLC. This strategy aims to position Coinbase as a fully-regulated broker-dealer able to offer an array of services, including crypto securities trading and margin trading. Now that’s forward-thinking!
New Opportunities for British Customers
In addition to their lofty growth ambitions, Coinbase recently announced a new service for its U.K. customers. The platform will now enable the trading of four additional cryptocurrencies—Ethereum (ETH), Ethereum Classic (ETC), Litecoin (LTC), and Bitcoin Cash (BCH)—against the British pound sterling (GBP). This is a lovely way to diversify investment strategies for our friends across the pond and make crypto trading a more appealing alternative.
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