For a while, the crypto industry has been speculated to become the “next big thing.” However, this journey has been dented continuously by lack of regulations to efficiently supervise the markets and incessant ICO exit scams, which have marred the crypto industry with a lousy repo. The developments in cryptosphere don’t show any signs of exhaustion.
Big Players Enter the Fray
It was reported on August 10 that social media giant Facebook has entered into a deal with crypto project Stellar for blockchain solutions. This partnership is seen as a stepping stone for Facebook to embrace the much talked about technology into its existing operational infrastructure.
Similarly, Starbucks recently announced a joint crypto venture with other major industry leaders such as Microsoft and ICE. The venture, dubbed Bakkt will aim to foster an open, transparent and regulated ecosystem for digital assets.
While such advances are objectively just baby steps into the crypto world, there’s a far more significant and more important thing that should be understood here, i.e., the willingness of large enterprises to enter the industry while it is still in its nascent stage. Entry of brands like Facebook and Starbucks will only provide the much required moral impetus to other firms to be a part of the mix when the crypto market has shown a general bearish sentiment.
Some of our more optimistic crypto enthusiasts will probably say that entry of big corporates in the crypto world was inevitable. However, one had to be confident out of proportions to predict that these enterprises would join in the crypto bandwagon at such an early and volatile phase of the industry.
Traditionally, large companies are always slow to embrace new technology or change because they are highly risk-averse. To invest or migrate to a new platform involves considerable brainstorming, strategizing and investment, something big companies take very cautiously.
However, these big firms see some scope of mutual benefit that can be derived by adopting crypto. The crypto platforms get to be able to penetrate the mass audience and mainstream culture through the loyal customer base of established firms.
ICOs are Startups, 90 Percent Bound to Fail
While the firms get to explore the blue ocean of cryptocurrencies and develop cost-effective peer-to-peer models and gauge the eroding loyalty that has sprung up in recent times, because, honestly, customers are spoilt for choice in the market today.
At the risk of sounding conflicted, it is not too far-fetched to say that these conglomerates will be the flag bearers of cryptocurrencies into the mainstream. At the end of the day, ICOs are just tech. Start-Ups and the majority of them will eventually fail.
Sure, some of them will become the Apple of tomorrow, but that will take quite some time and patience. Hence, it becomes imperative for the Facebooks and Starbucks to lead the way and be the pioneers of crypto into the mainstream world.