German Stock Exchange Powerhouse Stuttgart Börse to Launch ICO Platform
Stuttgart Börse, Germany’s second largest stock exchange, is entering the crypto space with plans to develop a new platform for initial coin offerings (ICOs). The announcement follows the launch of a zero-fee crypto trading platform known as Bison. At this stage, the move into cryptos is tentative and Bison is still in the developmental stages. However, the Stuttgart Börse ICO platform could inject some new life into Europe’s initial coin offering market.
Speaking to Finextra, Stuttgart Börse CEO Alexander Höptner said the move was due to an increase in demand for reliable and regulated ICOs. According to the stats, July 2018 saw $1.5 billion raised via ICOs. However, despite the sector booming, issues with security and control still persist. Fresh off a round of funding, KickICO fell victim to cybercriminals. After finding a way to create fake addresses, hackers were able to siphon off around 70 million coins worth more than $7.7 million. Despite addressing the issue and promising immediate refunds, the ICO news report was yet another example of how crypto fundraisers are still vulnerable.
Stuttgart Börse ICO to Give Market More Structure
The ICO platform by Stuttgart Börse will not only bring another major financial firm into the industry but establish a level of quality that other companies could follow. Interestingly, when Stuttgart Börse launches its initial coin offering service, it will cement Europe’s position as a leading ICO hub. Although it’s not quite a powerhouse on the global scene just yet, the list of European ICO operators is gaining momentum. In the same way Germany’s top exchange is eyeing up ICOs, the SIX Group recently announced that it’s also entering the market. Set to go live in mid-2019, the offshoot of the Swiss Stock Exchange will create a fully regulated platform for crypto trading and ICO consulting.
Having a stable platform to launch ICOs will result in a major boost for the industry. Despite organizations such as CoinAgenda awarding excellence, big brands and governments want to see more regulation. Indeed, with the likes of mainstream brands such as Kodak making the ICO news in 2018, the natural desire from companies and investors is more structure. Stuttgart Börse entering the market would certainly go a long way to redefining the way ICOs are handled. Will it completely rid the market of its problems? Possibly not. Unlike established investment commodities, cryptocurrencies are an emerging technology. Like all emerging tech, there will always be weaknesses that criminals can exploit. However, the more structure and oversight there is, the less significant these problems will be and the more lucrative cryptocurrency ICO sales will become.