The world of investments is about to reach a brand new level. The reason is the entry of NFTs and “tokenization” of digital assets. As a result, investing in digital assets is becoming an increasingly more popular topic. However, it is natural to ask; why is the development goin so fast? Does the uncertainty about regulation attrackt spesific groups of investors? If it should be regulated; how does one regulate a decentralized financial ecosystem? As a consequence, when will Blockchain based economies be ready for the traditional asset management industry?
Regardless of the questions above we are instead likely to accept that there are no imminent answers. Thus, the paradox of the growing Blockchain technology is the resistance from the established world of investing and regulators. Therefore, we might as well move our focus. The result is right in front of us, namely that NFT Investing do indeed represent good invetsment opportunities if it is managed correctly.
However, any investor is more likely to invets rather than manouver the massively increasing amount of digital artwork and artist. Unless you know this market very well you are not likely to succeed. On the other hand, the understanding of difference in digital investment objects is essencial. In more details; what (or who) is likely to increase in value is more social-media-alike and dependent of followers and likes. As a consequence, these are the ones who is buying and therefore also increasing the value of the digital asset.
The asset management industry has been walking in its own steps for decades. In these days however the question arises. When will the asset management industry be a part of the decentralized financial ecosystem revolution? On the other hand it is likely to believe that the demand from professional invetsors are increasing. However, with the lack of regulation we might instead continue to wait for a while.
It is a psyclogical aspect that “no one is providing it, so why should we be the first?” Perhaps old fashin conservatism is in play? Or, perhaps many is still waiting for more regulation to be in place. In any case, the crypto currency institutions, as they exists today, have been imposed by requirements for KYC, KYB and AML reqirements. This is probably both fair and natural. But, if direct regulation will come is not likely. At least not for a while. In the interim we are basing our Crypto activity on both enthusiasm and trust between individuals.