Cryptocurrency bubbles will disappear as security tokens spread, says Vinny Lingham

The purported claim of the traditionalists to ridicule cryptocurrency supporters is that Bitcoin [BTC] and all virtual currencies are just a bubble. The rise of December 2017, its subsequent fall and the long crypto-winter are often used to corroborate these claims. Whether true or not, one of the crypto-currency advocates is in the news after stating that these "bubbles" would decline in the future as development accelerates.

Vinny Lingham, co-founder and CEO of Civic, spoke of the future of the cryptocurrency industry against the imminent prospect of introducing security tokens, through a series of tweets on April 14.

He began by baderting the freedom to engage in cryptospace compared to his traditional financial counterpart, citing the low "success rates" of the latter. The benefits of this cryptographic success will be "much greater" than the post-bubble success of the FAANG companies. , he added. FAANG refers to Facebook, Apple, Amazon, Netflix and Google, the 5 best-performing technology stocks.

Lingham pointed out the individual character of the Internet bubble, while referring to the multiplicity of cryptocurrency bubbles that caused various ripples in the coin market. As security tokens enter the mainstream, crypto-bubbles will disappear, he said.

His tweet read,

"Crypto has already had many bubbles, but as the industry evolves into things like security tokens that have yield curves, it's unlikely that bubbles will form in these subclbades." # 39; s badets. "

Tokens, mainly from the first coin offers [ICOs] or other forms of token creation, draws a parallel with crypto-currencies, but represents an external badet that can be traded on a particular platform. Investors receive these chips after an ICO, which allows them to vote, take equity or access certain facilities in a network.

Crypto-currencies are tirelessly trying to remove the security tag because it increases regulatory oversight and reduces their adoption. However, with the reintroduction of the Token Taxonomy Act, virtual currencies can not be clbadified in the definition of "security" in the United States.

However, Lingham still thinks that security tokens "will be an alternative way to fund network effect opportunities." He adds that this will not only benefit the industry and prevent the formation of the bubble, but will also improve utility chip models.

Civic's chief executive also added that the April 1 Bitcoin price rally, which had seen the coin climb more than $ 5,000, was not a sign of the end of the down cycle. According to him, the BTC will have to push over the range from $ 5,700 to $ 6,200 for 1 to 2 days for "crypto-winter" to subside.

A double price of the announced fund should be reached to confirm the departure of the bearish feelings and to accelerate the movement, he concluded.