#BEF2018
Derivatives for relatively illiquid cryptoassets are a bad idea.
It is “silly” but will likely stay as a way to tier investor protection.
As more AML/KYC and anti-front running laws get set in place, and as centralized exchanges increase rent, dex’s will start to catch volume.
Regulators will likely then target on-ramps.
If asset is liquid (e.g. stocks and bonds), tokenization will likely be unnecessary except for global tax arbitrage.
For Gold, silver - probably will happen due to capital markets interest.
For illiquid assets, tokenization may bring unknown risks (e.g. as seen in the securitization of commercial loans and mortgage backed securities in 08)
(cc @APompliano, thought you’d be interested!)
If crypto stabilizes in public policy (projected timeline 2-3 years) and the asset class scales significantly, hedge funds and investment banks will come in en masse, but might be slower due to reputational and compliance risks.
Most ICOs are probably security offerings but can become decentralized over time.