IdentifyMind, a Californian regtech firm that serves cryptocurrency exchanges amongst different purchasers, believes that these platforms will witness explosive development within the coming months, the corporate mentioned on Tuesday.
According to Neal Reiter, director of the ICO and digital foreign money enterprise unit of IdentityMind, there’s super development in cryptocurrency exchanges however most individuals simply aren’t seeing it. He expects continued momentum for the months forward.
“In 2013, when the price of one bitcoin went from US$150 to US$1,200, we saw the formation of hundreds of exchanges in the US and Japan,” Reiter mentioned. “However, this year while bitcoin’s price has fluctuated from US$17,000 to US$6,000, and while we again saw a large number of exchanges, this time they were in Latin and South America, South Asia and Africa.”
While smaller gamers are having difficulties coming into bigger and established markets, bigger gamers are giving it a go, hoping to seek out efficiencies attributable to their measurement and skill to subsidize losses within the meantime.
Examples embrace Japan’s cryptocurrency alternate BitFlyer, which launched in the US in November 2017 and Europe earlier this year, and China’s Huobi, which opened registration for its new US-based platform HBUS simply final week. Huobi additionally operates an Australian platform and just lately opened an office in London forward of a European launch.
As we transfer into the second half of 2018, IdentityMind anticipates that giant corporations corresponding to Huobi will proceed to broaden as they compete towards each other to develop into worldwide exchanges. It additionally predicts the shaking out and institution of corporations that can take management positions in international locations with out established leaders corresponding to India, Indonesia, and Nigeria.
Reiter expects the US Securities and Exchange Commission (SEC) to proceed to shut-down fraudulent ICOs but in addition start to focus on ICOs that declare to be promoting utility tokens which might be in actual fact safety tokens.
IdentityMind shared its mid-2018 insights and predictions on ICOs and cryptocurrencies after having assisted greater than 165 purchasers conduct ICO or safety token providing, the corporate claims.
The insights are primarily based on conversations and consultations with over 650 world corporations conducting ICOs in 2018, from massive utility tokens with over 25,000 contributors requiring know your buyer (KYC) to small safety tokens with 10 contributors needing KYC and accredited investor verification. IdentityMind has additionally spoken with over 65 corporations launching a digital foreign money alternate in 2018.
IdentityMind supplies a software program as a service platform that builds, maintains and analyzes digital identities, permitting companies to carry out identification proofing, risk-based authentication, regulatory identification, and to detect and stop identification fraud. It claims to be working with greater than 25 cryptocurrency exchanges.