Say GOOD-BYE to another financial mainstay; small cap stocks. Just a week or so ago FintekNews wrote a piece that a huge ETF titan has predicted the demise of ETFs within a few years. Now here comes Kevin O’Leary (Mr Wonderful) predicting small cap stocks will also go by the wayside. So, what will replace small caps? Asset based coins done via initial coin offerings (ICOs). (Funny, these tokens are also the culprits to take down the ETF sector too.) Why? First, when you do an ICO (security tokens for sure) you do not have to give up equity in the project/company but rather the token “investor” just participates in the potential success of the company. Second, its a lot cheaper and management doesn’t have to deal with those pesky shareholders. So “smart contracts” offered by token offerings are the wave of the future. Hmmmm! Here’s another “dinosaur” that will be phased out; the activist investor. Another plus for ICOs.
(Bill Taylor/Managing Editor)
ICO: Asset-based coins will eventually replace small cap stocks, says…
6:01 AM ET Mon, 19 March 2018
“Shark Tank’s” Kevin O’Leary explains why he is “very excited” about initial coin offerings through “smart contracts.”
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