So now there is Mastercoin, Colored coin, and Counterparty all on the bitcoin block chain making colored coins.

And NXT, Ripple, and Bitshares making colored coins possible on their own chains. 

I see how it is cool, but basically it is IOUs from a party you don't really know.  This is a hard sell.  I am not saying it won't work, but there is a lot of competition now and all are clamoring for the same clients, who are actually few in number. 

This might all change.  Somebody had to be the first person to use a computer, or smartphone, or bitcoin.  To me, all of those seemed like common sense.  As for colored coins though, it seems like Ripple has the best model by far.  And it is far from doing well.