Recently the total number of cryptocurrencies surpassed the 2,000 mark, indicating market capitalization of around $200 billion. While it is true that a slew of cryptocurrencies have been developed and made available to the public in last year only, the fact remains that there is still a hint of uncertainty and unreliability that surrounds it, discouraging investors from diving into this thriving technology.
For example, JP Morgan’s CEO Jamie Dimon in September 2017, called Bitcoin a “fraud”. He went on and claimed that if any one of his employees is found trading the famous cryptocurrency, he would fire them. While this comment was made quite a while ago, overtime, it seems Dimon’s opinions haven’t swayed, as recently he claimed that he doesn’t really care about Bitcoin. Be as it may, JP Morgan continues to invest in the underlying technology of cryptocurrency: blockchain.
But cryptocurrency has received its fair share of contrasting opinions. While on one hand you hear Jamie Dimon label bitcoin as a scam, on the other hand you have the ex-CEO of Barclays, Anthony Jenkins who has nothing but praise for the flourishing technology. He claims that in this day and age, with the ever-growing technology, it is essential for companies to steer clear of being faded into oblivion by accepting and incorporating new and promising industry technologies. He went on and gave the example of Kodak – the well-reputed photography company that failed to cope up with the evolving technology that took the photography industry by storm. Its downfall can be attributed to the time when digital cameras came into being and when their widespread acceptance started. Jenkins has said: “This is just in the footprints of what’s going to happen here. As these technologies season and develop, we can imagine total transformation of the banking system, using blockchain for example, in a world where banks don’t really exist anymore.”
This goes to show the direness of accepting new technologies, not just AI and blockchain but cryptocurrency as well.
Cryptocurrency also plays an important role when it comes to raising capital for the operations of a company. Since these days the trend of raising funds by businesses are changing, there exists a divide between companies. While some are tapping traditional methods, some are resorting to ICOs. Bear in mind though, ICOs are not similar to crowdfunding. While crowdfunding relies heavily on the generosity of investors in exchange for products, ICOs work differently. Unlike crowdfunding which offers a service or a product, ICOs work when companies offer digital coins either made by the company itself or related to it, in exchange for other, more popular digital currencies such Bitcoin or Ethereum. Investors do this in the hope that these new and upcoming cryptocurrencies will breakthrough, providing them an influx of profit. Investors do this for startups they actually believe in or see potential or growth. ICOs have enabled companies to earn as much as a million dollars and that too, in the span of a day.
If you have looked into cryptocurrency enough, then it is quite likely that you are aware of the IOTA ICO use case. IOTA is a platform which solves major issues such as scalability and transaction fees faced by well-reputed cryptocurrencies like bitcoin and ethereum by fully decentralizing the entire ledger and establishing a zero-fee transaction process. The initial coin offering was initiated by IOTA in November 2015, and just a month later, in December 2015 it managed to raise as much as $400,000.
A takeaway for the success of IOTA is that innovative projects that seem promising to investors actually work and bring in funding that can in its true meaning fuel the growth of an organization.
Another evidence that adds to the promising future of cryptocurrency is the recent no-action letter for cryptocurrency cleared by SEC. The U.S. Securities and Exchange Commission issued its first every no-action letter and crypto evangelists can’t help but laud this act.
TurnKey Jet, which is a startup and has launched its own cryptocurrency like bitcoin in order to raise capital to fuel its operations. The startup basically offers private jet services with every necessary element needed to fly from once place to another, inclusive; be it the pilot, crew or the plane itself.
Now with the help of the no-action letter provided by SEC, this Florida-based startup is free to sell its TJK tokens to enable customers to book their private jets with ease. The lawyer of Turkey Jet, James Curry describes the process to be long but rewarding. He went about the process by ensuring that Turnkey Jet was a regulated company so that the no-action letter can not be denied to them on the basis of regulations.
Why TurnKey Jet opted for token, anyway?
Banking hours are a hurdle for people when it comes to transferring money at odd times. Curry explained that rich guys have the money ready to be transferred, but banking hours become a hindrance for them. So, with a token, customers are able to pre-book their jets, without having to stick to the schedules of banks. In addition to that, depending on the value of the token, pre-purchasing it could save some money of the customer. So, the limitations provided by banks were quite a few, and TurnKey Jet basically filled up the market gap by providing a liable solution for customers and empowering them.
Cryptocurrency continues to benefit its investors and TurnKey Jet is just one example out of the slew of use cases that have been put forth ever since the inception of this kind of digital money. Like the ex-CEO of Barclays Anthony Jenkins, we would also recommend you to look into options to bring about an advancement into your cooperation to not only cater to the problems of your customers but also make things easier for your own business. If you set out to make your company as regulated as TurnKey, chances are you will also get the no-action letter by the U.S. Securities and Exchange Commission making the process of raising money for your company a cakewalk