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The world of cryptocurrency is really starting to take off. We see development all over the place which is going to attract mainstream businesses. At some point, probably very soon, we will see some major entities entering the realm with the idea of transitioning a part of their business model over.
Steem is growing along with the whole. Over the past year, we saw a massive increase in the number of applications. Many of these are getting use rates that exceed the industry norm.
One of the projects I am very excited about is Steem Engine. This is an exchange that was developed by @aggroed and @yabapmatt. It provides Steem with the ability to create tokens via smart contract technology. Since their introduction, there are a number of tokens created, an IEO, and the first airdrop.
This is quite an achievement for something that is only a couple months old.
Aggroed stated that he wants to become the "NASDAQ" of the cryptocurrency world. This is a big vision, one that would really help Steem. Even if the success rate is a bit lower than that, this could lead to a massive explosion of Steem usage.
Another trailblazing activity for Steem Engine is the complete of the first Security Token Offering. This is a way to raise money by selling an asset for tokens. The tokens denote ownership in the asset with the expectation of a return.
Something like this, if it takes off, could be massive. The only problem is it puts one in the crosshairs of the regulators, most notably the SEC. This is certainly a security meaning there are a number of legal pitfalls that could arise.
Security Tokens are expected to see massive adoption in the next couple years. Unlike ICOs, STOs are going to be regulated according to existing standards. This, in theory at least, provides investors with a safer option. ICOs got a bad name since there were so many scams and projects that ended up simply taking people's money.
To help individuals and companies navigate these waters, Steem Engine put together legal services for those who are interested. Typically, taking a company public to raise money is a multi-million dollar endeavor. There are a lot of regulations that need to be met and, basically, it is not a viable option for most companies.
Steem Engine could be offering a package that is attractive to smaller businesses. Instead of spending that sum, a company could set out to raise millions with a few thousand dollars. From a rough calculation, the entire process could be completed for under $25,000, a fair portion which is paid with money raised.
This is certain to be a viable option for many businesses. Crowdsourcing and other non-traditional fund raising methods are becoming popular. Cryptocurrency is adding another layer to it.
I foresee this having the potential to being huge for Steem. To start, individuals should be offered the opportunity to buy these tokens. Being on Steem Engine, I imagine that one will be able to use whatever token that platform supports. Even if there are only specific ones, the ability to swap AFIT or ENG to BTC is simple.
The second benefit to this for Steem could be similar to what propelled Ethereum. The ICO market was mostly done using the ERC20 protocol. Ethereum became the de facto blockchain for ICOs.
If Steem Engine can gain some momentum as a place to stage STOs, this could really explode. While Steem Engine is a separate chain, it is tied to Steem in that all transactions are imprinted on Steem using JSON.
Ultimately, the scope of this exchange could be stretched to go beyond fund raising. There is no reason why we cannot see a market similar to what Wall Street has. Steem Engine could provide a host of products that people can purchase. This would help to break up the Wall Street monopoly on financial products.
A full write up detailing the latest announcement is found at this link.
https://steempeak.com/steem-engine/@aggroed/breaking-news-steem-engine-now-offering-legal-services
Could Steem Engine becoming a thriving marketplace for all kinds of digital assets?
We can only hope so. This is one to watch.
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