I hope you're subscribed to the news channel! If so, you've probably seen this news. About a year or even a year and a half ago, I mentioned that sooner or later, companies like Amazon, Microsoft, Apple, and all the major banks would publicly enter the crypto sphere. Now, I'm more certain than ever that they’ve been laying the groundwork for years and are actively accumulating assets. However, it's likely they view these assets primarily as a hedge class or for speculative purposes.
Eventually, as always, the media will release highly positive, bullish news at just the right time, announcing that some major giant is finally ready to break into the crypto market. Retail investors will celebrate and laugh, claiming that institutional players were once again the last to realize cryptocurrency is the future. But retail often overestimates its own savvy. These same institutional investors will unload their bags of useless tokens onto retail at just the right moment.
Let’s move on. I’ve already made a video discussing whether a token's price should rise if a project has a product or service—using DYDX as an example. The answer? No, a token's price is not guaranteed to increase, nor does it directly reflect the performance or functionality of the product or platform.
Now, let’s talk about the German banking giant launching its own blockchain. Does the bank need a token for this? Not necessarily. And even if it does issue a token, it doesn’t mean its price will rise. Many people fail to distinguish between blockchain as a technology and the often-useless virtual "candy wrappers" that we trade. Tokens come and go, but technologies endure and evolve.
Any major bank—or companies like Amazon and Microsoft (take Sony, for instance, launching its own network)—has the resources to develop its own blockchain and execute transactions, such as cross-border payments, without relying on Ethereum or other existing solutions. It’s important to understand that banks have sufficient capital and influence to attract top talent and invest heavily in creating their own blockchain ecosystems. These systems could foster mass adoption and drive the digitalization everyone talks about—without requiring a token.
Amazon, for example, could create a blockchain to manage payments, deliveries, and all company services without concern for token prices within that network. My point is that tokenization is indeed our future. However, I’m not saying this is necessarily a good thing—in fact, I’m inclined to feel the opposite.
That said, don’t assume tokenization will make you fabulously rich. The implementation of blockchain technology in our everyday lives is separate from trading virtual assets of questionable value. #cryptooinsigts